8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

Form 8-K

Current Report

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 16, 2010

TRIDENT MICROSYSTEMS, INC.

(Exact name of registrant as specified in its charter)

0-20784
(Commission File Number)

Delaware	77-0156584
(State or other jurisdiction of incorporation)	(I.R.S. Employer Identification No.)

3408 Garrett Drive
Santa Clara, California 95054-2803

(Address of principal executive offices, with zip code)

(408) 764-8808

(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 8.01 Other Matters.

On July 16 , 2010, Trident Microsystems, Inc., a Delaware corporation (the “Company”) issued a press release announcing that it has consented to a settlement with the Securities and Exchange Commission (the “SEC”) regarding the previously-disclosed SEC investigation into the Company’s historical stock option practices and related accounting. A copy of the press release is filed as Exhibit 99.1 to this Current Report and is incorporated herein by reference.

Item 9.01 Financial Statements and Exhibits.

     (d) Exhibits.

Exhibit
No.	Description
Exhibit 99.1	Press Release dated July 16, 2010 announcing settlement of SEC option investigation.

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SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: July 16, 2010

TRIDENT MICROSYSTEMS, INC.

/s/ David L. Teichmann  

David L. Teichmann 

Executive Vice President, General Counsel & Corporate Secretary 

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EX-99.1

Exhibit 99.1

TRIDENT MICROSYSTEMS ANNOUNCES SETTLEMENT OF SEC OPTION INVESTIGATION

SUNNYVALE, Calif., July 16 /PRNewswire-FirstCall/ — Trident Microsystems, Inc. (Nasdaq:TRID - News) announced today that it has entered into a settlement with the Securities and Exchange Commission (“SEC”) regarding the previously-disclosed SEC investigation into the Company’s historical stock option practices. Under the terms of the settlement, the company will not pay any penalty or other money damages.

The company has agreed to settle with the SEC without admitting or denying the allegations in the SEC’s complaint. The company has consented to entry of a permanent injunction against future violations of anti-fraud provisions, reporting provisions and the books and records requirements of the Securities Exchange Act of 1934 and the Securities Act of 1933.

Subject to court approval, this settlement will conclude the investigations into the company’s historical stock option practices.

About Trident Microsystems, Inc.

Trident Microsystems, Inc., with headquarters in Sunnyvale, California, is a leading force in the digital home entertainment market, delivering an extensive range of innovative multimedia semiconductor solutions for digital televisions and set-top boxes — at the heart of today’s digital home. Trident has been making bold moves to expand its market, deepen and more fully leverage its Intellectual Property (IP) portfolio, and drive the evolution of the “connected home.” Its acquisition of NXP Semiconductors’ set-top box and television product lines in 2010 establishes Trident as one of the top three semiconductor providers to both the TV and set-top box markets. For further information about Trident and its products, please consult the Company’s web site: http://www.tridentmicro.com.

NOTE: Trident is a registered trademark of Trident Microsystems, Inc. All other company and product names are trademarks and/or registered trademarks of their respective owners. Features, pricing, availability and specifications are subject to change without notice.

For More Information

John Swenson
Tel: 408-962-8252
Email: john.swenson@tridentmicro.com