Exhibit 4.40
 Execution Version
 LOAN ASSIGNMENT AGREEMENT
  GIGAMEDIA ASIA PACIFIC LIMITED
  INFOCOMM ASIA HOLDINGS PTE. LTD.
  SPRING ASIA LIMITED
  ASSIGNMENT OF SHAREHOLDER LOAN AGREEMENT




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TABLE OF CONTENTS
 1. DEFINITIONS AND INTERPRETATIONS
    
    
    32. ASSUMPTION OF RIGHTS AND INTERESTS
    
    
    43. REPRESENTATIONS AND WARRANTIES
    
    
    44. TERMINATION
    
    
    55. MISCELLANEOUS
    
    
    5APPENDIX 1
    
    
    9APPENDIX 2
    
    
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THIS LOAN ASSIGNMENT AGREEMENT (Agreement) is dated June 1, 2010 (the
Effective Date) and made
 AMONG:
 (1)
    
    GIGAMEDIA ASIA PACIFIC LIMITED (the Lender), a company duly organised and
existing under the laws of the British Virgin Islands with its registered
office at Overseas Management Company Trust (B.V.I.) Ltd., OMC Chambers,
P.O.Box 3152, Road Town, Tortola, British Virgin Islands;(2)
    
    INFOCOMM ASIA HOLDINGS PTE. LTD. (the Borrower), a company incorporated
in Singapore with its registered office at 28 Maxwell Road Red Dot Traffic
#04-01 Singapore 069120; and(3)
    
    SPRING ASIA LIMITED (Certificate of Incorporation No. LL017149) (the
Assignee), a company duly organised and existing under the laws of Labuan
with its registered office at Lot 2 & 3, Level 3, Wisma Lazenda Jalan Kemajuan,
87000 Federal Territory of Labuan.
 BACKGROUND:
 (A)
    
    WHEREAS, the Lender and the Borrower entered into the Shareholder Loan
Agreement (as defined below) pursuant to which the Lender advanced a loan
facility to the Borrower in an principal amount of US$7,000,000 (the Loan);(B)
    
    WHEREAS, the Lender and the Borrower entered into the Amendment to
Shareholder Loan Agreement (as defined below); and(C)
    
    WHEREAS, the Lender desires to assign and transfer to the Assignee, and
the Assignee wishes to accept the assignment and transfer from the Lender of,
all of the Lenders rights and interests as a lender under the Shareholder
Loan Agreement.
 THEREFORE
 1.
    
    DEFINITIONS AND INTERPRETATIONS
 1.1
    
    Definitions
 Amendment to Shareholder Loan Agreement
 Assignment
 Business Day
 HKIAC
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Hong Kong
 Loan
 Party Parties
 Person
 Shareholder Loan Agreement
 US$
 1.2
    
    The headings and sub-headings in this Agreement are inserted for convenience only and shall
not affect the interpretation of this Agreement.
 2.
    
    ASSUMPTION OF RIGHTS AND INTERESTS
 2.1
    
    Effective as of the Effective Date, the Lender hereby assigns and transfers to the Assignee
all of its rights and interests as the lender under the Shareholder Loan Agreement and the
Amendment to Shareholder Loan Agreement (the Assignment). Such assigned and
transferred rights and interests include but not limited to its rights and interests with
respect to the outstanding principal amount of US$7,000,000 and the interest accruing in
accordance with the Shareholder Loan Agreement and the Amendment to Shareholder Loan Agreement
on and after the Effective Date.
 2.2
    
    Effective as of the Effective Date, the Borrower accepts the Assignment and assumes and
agrees to perform toward the Assignee, as and when due, any and all obligations of the
Borrower under the Shareholder Loan Agreement and the Amendment to Shareholder Loan Agreement.
 3.
    
    REPRESENTATIONS AND WARRANTIES
  (A)
    
    It is a duly organised and validly existing legal person in good standing under
the laws of its jurisdiction of incorporation or establishment.
 (B)
    
    It possesses full power and authority to enter into this Agreement and to
perform its obligations hereunder and thereunder.
 (C)
    
    The execution and performance of this Agreement will not constitute a breach or
violation of any material contract or agreement to which it is a party.
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(D)
    
    It is in compliance with all material laws, regulations and governmental
orders, and all interpretations thereof, of all governmental authorities having
jurisdiction over it, its business, finances, operations, property or any other matter.
 (E)
    
    Its representative, whose signature is affixed hereto, has been fully
authorised to sign this Agreement on its behalf pursuant to a valid power of attorney
or board of directors resolution, as the case may be.
 (F)
    
    This Agreement shall constitute its legal, valid and binding obligation as of
the Effective Date.
 4.
    
    TERMINATION
 4.1
    
    This Agreement may be terminated by written agreement among the Parties.
 5.
    
    MISCELLANEOUS
 5.1
    
    Notice. All notices, requests, demands and other communications to be given or
delivered under or by reason of this Agreement shall be in writing (which shall include notice
by facsimile or like transmission) and shall be deemed given:
 (A)
    
    if delivered by hand, on the day it is delivered, or on the next Business Day
if delivery is made on a non-Business Day or after the business hours of a Business
Day;
 (B)
    
    if sent by facsimile, on the day when transmittal confirmation is received, or
on the next Business Day if the facsimile is transmitted on a non-Business Day or after
the business hours on a Business Day;
 (C)
    
    if sent by certified or registered air mail, on the seventh Business Day
following its being deposited at a local postal service provider for mailing if the
address of the addressee for notice is in the same country as the place of mailing, or
otherwise, on the tenth Business Day following its being deposited at a local postal
service provider for mailing,
  For Lender:
    
    GigaMedia Asia Pacific LimitedAddress
    
    Overseas Management Company Trust (B.V.I.) Ltd., OMC
Chambers, P.O.Box 3152, Road Town, Tortola, British
Virgin IslandsAttention
    
    CEOWith copies to:
    
    GigaMedia LimitedAddress
    
    The Centrium, 22/F, 60 Wyndham Street,
Central, Hong KongTelephone Number
    
    +852 3166 9830Facsimile Number
    
    +852 3166 9831
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Attention:
    
    General CounselFor Borrower:
    
    Infocomm Asia Holdings Pte. Ltd.Address
    
    28 Maxwell Road Red Dot Traffic #04-01 Singapore 069120Facsimile Number
    
    +65 6898 8881Telephone Number
    
    +65 6898 8881Attention:
    
    CEOFor Assignee:
    
    Spring Asia LimitedAddress
    
    Lot 2 & 3, Level 3, Wisma Lazenda Jalan Kemajuan, 87000
Federal Territory Of LabuanAttention:
    
    General Counsel
 5.2
    
    Governing Law. Matters regarding the execution, validity, interpretation and
performance of this Agreement as well as settlements of disputes arising hereunder, shall be
governed by the published and publicly available laws and regulations of Hong Kong and the
treaties and other international agreements to which Hong Kong is a party.
 5.3
    
    Dispute Resolution
 (A)
    
    The Parties shall try to resolve any dispute, controversy or claim arising out
of or in connection with this Contract through friendly consultations between the
Parties. But, if no settlement is reached within thirty (30) days from the date one
Party notifies the other Party in writing of its intention to submit the dispute,
controversy or claim to arbitration in accordance with this Article, then any such
dispute, controversy or claim arising out of or relating to this Contract, or the
breach, termination or invalidity thereof, shall be settled by arbitration by the HKIAC
in accordance with the UNCITRAL Arbitration Rules as at present in force and as may be
amended by the rest of this Article. The arbitration will be administered by HKIAC in
accordance with HKIAC Procedures for Arbitration in force at the date of this Contract
including additions to the UNCITRAL Arbitration Rules as are therein contained.
 (B)
    
    The place of arbitration shall be in Hong Kong at the HKIAC. The arbitration
proceedings will be conducted in English. The arbitration panel will consist of three
(3) members. Each Party shall select one (1) arbitrator. The arbitration award shall
be final and binding on the Parties, and the Parties agree to be bound thereby and to
act accordingly. The costs of arbitration and the costs of enforcing the arbitration
award (including witness expenses and reasonable attorneys fees) shall be borne by the
losing Party, unless otherwise determined by the arbitration award.
 (C)
    
    In any arbitration proceeding, any legal proceeding to enforce any arbitration
award and in any legal action between the Parties pursuant to or relating to this
Agreement, each Party expressly waives any defence based
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(D)
    
    Any award of the arbitrators may be enforced by any court having jurisdiction
over the Party against which the award has been rendered, or wherever assets of that
Party are located, and shall be enforceable in accordance with the New York Convention
on the Recognition and Enforcement of Foreign Arbitral Awards (1958).
 5.4
    
    Entire agreement. This Agreement, together with the Shareholder Loan Agreement as
altered hereby and the exhibits and the schedules hereto, constitutes the entire agreement
among the Parties with respect to the subject matter hereof and supersedes all prior written
or oral understandings or agreements (except for untrue or fraudulent statements). Each Party
has only relied on the representations, warranties, understandings and specifications
contained in this Agreement in reaching its decision to execute this Agreement and to enter
into the transactions contemplated hereby.
 5.5
    
    Severability. If any provision of this Agreement shall be held invalid, illegal,
voidable, unenforceable or unconscionable, to any extent by any court, tribunal or
governmental authority with competent jurisdiction, such parts shall be deemed as having been
severed from this Agreement and the remainder of this Agreement shall continue to be
effective. If any provision is deemed unenforceable, both Parties shall replace it with a
similar provision agreed on through negotiation to reflect the original intention of the
Parties to the greatest extent permitted by law.
 5.6
    
    No waiver. A Partys failure to exercise, exercise with delay or exercise in part
its rights under this Agreement, shall not be deemed to constitute a waiver of its other
rights or all rights under this Agreement. A Partys waiver of its rights in respect of a
breach by the other Party of this Agreement in one particular situation shall not be deemed to
have waived such Partys rights against the other Party for a similar breach of this Agreement
in other situations.
 5.7
    
    Counterpart execution. This Agreement may be executed in one or more counterparts,
each of which shall be deemed an original but all of which together shall constitute one and
the same instrument.
 5.8
    
    No third party beneficiary. Except to the extent otherwise expressly provided herein,
nothing in this Agreement is intended to confer upon any Person other than the Parties hereto
and their respective permitted successors and assigns any rights, benefits or obligations
hereunder.
 5.9
    
    Costs. Each Party shall pay its own costs relating to the negotiation, preparation,
execution and implementation by it of this Agreement and of any documents referred to in it.
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GIGAMEDIA ASIA PACIFIC LIMITEDBy:Name:Title:INFOCOMM ASIA HOLDINGS PTE. LTD.By:Name:Title:SPRING ASIA LIMITEDBy:Name:Title:
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APPENDIX 1
 COPY OF SHAREHOLDER LOAN AGREEMENT
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APPENDIX 2
 COPY OF AMENDMENT TO SHAREHOLDER LOAN AGREEMENT
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