Apple’s clean-break settlement with GT Advanced is now official, two days after lawyers for the bankrupt sapphire manufacturer reported that agreement had been reached. In a press release, the company said that the company was being given up to four years interest-free to repay the $439M owed to Apple.
GT will be released from all exclusivity obligations under its various agreements with Apple. GT will retain ownership of all production, ancillary and inventory assets located in Mesa and Apple is provided with a mechanism for recovering its $439 million pre-payment made to GT over a period of up to four years without interest, solely from a portion of the proceeds from ASF® sales. The agreement provides for a mutual release of any and all claims by both parties. As a result of the agreed upon terms, GT retains control of its intellectual property and will be able to sell its sapphire growth and fabrication technology, including ASF and Hyperion™, without restrictions.
The company is exiting the sapphire production business and will repay Apple from the proceeds of selling its furnaces, the four-year timeframe likely agreed in order to allow GT Advanced to achieve the best price.
GTAT said that it will continue “technical exchange” with Apple to help develop future production processes, but will limit its future involvement in sapphire to making production equipment for other companies.
FTC: We use income earning auto affiliate links. More.
That last paragraph seems to sum up the issue. They can build the equipment, but were in over their heads on using the equipment to produce the glass at any type of scale, is what I am thinking. They must have some great sales folks that got Apple to agree to this in the first place. Hopefully it doesn’t inadvertently set back US Manufacturing.
From what the process sounds like it was borrowed from silcion string production. I don’t think it will set back MFG in the US. What is interesting is Apple, in another article, has asked the court to seal the documents.
I can tell you what will happen. A chinese company wil come over and promise to buy the furnaces in lots. The first lot will be,say 5. They will pay for them. GT won’t hear from them again. Let’s just say the copying machines will fire up.
Seen this happen with another company first hand.
Or a Korean company ;) Apple’s best move would be to contract with a company that can manage production and QA in the volumes that they need and them point them to GT to buy the furnaces.
This is pretty sad. I was hoping Apple would buy them out and continue working on the technology.
same thing Microsoft was criticized for doing to companies in the 90s
How about the guys from GT who made millions on sold stock, VERY shortly before it went bust? Seems kinda fishy to me. No investigation into the trading so close to the time it went under?