Applied buys Kokusai after settling with ASMI

Hours after ASM International settled its patent litigation with Kokusai Electric, Applied Materials announced the acquisition of the Japanese company. For 2.2 billion dollars, Applied gains a foothold in batch processing equipment for atomic layer deposition, which is also ASMI’s forte. Applied’s traditional focus is on single wafer processing equipment.

The patent litigation was initiated in February 2018 by ASMI and Kokusai’s predecessor, Hitachi Kokusai Electric. The lawsuits concerned the use of intellectual property following the expiration of a license agreement. Under the terms of the settlement, Kokusai will pay ASMI an amount of 115 million dollars, parties will provide each other a portfolio-wide cross-license until 1 July 2021, and a license for any litigated patents.

This settlement is unrelated to the arbitration proceeding that ASMI initiated against Kokusai in August 2017, concerning a breach of a previous license agreement. The American Arbitration Association is expected to announce its decision in the course of the coming months.