Rockwell to Continue Chip Supply to Hayes

Rockwell International Corp. and Hayes Microcomputer Products Inc. said Friday that they have resolved their legal differences and that Rockwell will continue to supply microchips to Hayes to make computer modems.

Hayes, which has been in bankruptcy reorganization proceedings in Atlanta, where it is based, had argued that Rockwell’s telecommunications division in Newport Beach was withholding chip shipments to pressure it into selling a patent. Rockwell countered that it could not make chips fast enough to satisfy demand and that all of its customers have encountered chip shortages.

In May, a Bankruptcy Court judge ordered Rockwell to resume supplying enough chips to allow Hayes to keep operating through July.