Subsequent Event

6 Months Ended

Mar. 31, 2015

Subsequent Events [Abstract]

Subsequent Event

Subsequent Event

On April 20, 2015, the Company entered into Equipment Lease Agreements ( Lease Agreements) with Powerchip Technology Corporation (Powerchip). Under the Lease Agreements, the Company will purchase and then lease up to an aggregate of $73.5 million in semiconductor manufacturing equipment to Powerchip whereby Powerchip will acquire ownership of the equipment at the end of the lease period, and the Company will obtain access to certain manufacturing capacity and technology at Powerchip.

The Lease Agreements provide for a term of approximately six years, each ending December 31, 2021. Beginning in 2019 and continuing through 2021, Powerchip will make quarterly payments to the Company in an aggregate amount of approximately $82.1 million (the Quarterly Payments). Until such time as all Quarterly Payments have been made, the Company shall own, and continue to own, all equipment subject to the Lease Agreements.

In addition to making the Quarterly Payments, Powerchip shall provide the Company with manufacturing capacity to produce a specified number of wafers each month beginning in 2015 through 2021. The Company has an option to renew such manufacturing arrangement for an additional three years.