Aug 22 (Reuters) - German chipmaker Infineon

Technologies AG said on Thursday it has reached a

settlement with Qimonda AG's insolvency administrator by

agreeing to pay 753.5 million euros ($837.21 million), ending

the long-pending legal dispute.

Qimonda's administrator had sued Infineon in 2010 for 3.35

billion euros, arguing the chipmaker had transferred operations

to it at an inflated price.

The company was spun off from Infineon in 2006, but

collapsed in 2009 after chip prices plunged.

It filed for insolvency after failing to hammer out details

of a rescue package with its parent company.

The settlement agreement is for 753.5 million euros,

slightly lower than claimed 800 million euros, as Infineon is

submitting a declaration of subordination for already

established claims, for around 26.5 million euros, the

administrator said in a statement.

"As a result of the payments, Infineon will utilize the

provisions set aside for the legal dispute. The amount in excess

of this will have a negative impact on earnings and cash flow

from discontinued operations," Infineon said.

The administrator added the conclusion of insolvency

proceedings will be possible in 2025, with substantial dividends

for the creditors.

($1 = 0.9000 euros)