The global semiconductor foundry, United Microelectronics Corporation (TWSE: 2303; NYSE: UMC) and Micron Technology, Inc. (Nasdaq: MU) have agreed to settle their legal batter over IP infringement.
The companies will withdraw all their complaints against the other party, globally. Taiwan-based UMC will settle the case with a one-time payment of an undisclosed amount to Micron, both the parties said in separate statements on Thursday without elaborating on reasons for their withdrawal agreement. The move comes amid broader concerns from the US government about technology theft, particularly in relation to China. It ends a high-profile chapter in the US-China tensions.
Going forward, both UMC and Micron look forward to engaging in mutual business cooperation opportunities.
Micron is one of the world’s largest semiconductor companies with more than 40 years of technology leadership and innovation, over 47,000 lifetime patents granted and significant investment in leading edge manufacturing and processes. IP protection is fundamental to Micron’s ability to remain competitive as the company continues to drive innovation that is essential to the data economy. The company earlier had accused UMC of misappropriating trade secrets and passing them to a Chinese state-backed firm. UMC had alleged patent infringement by two of Micron’s China-based subsidiaries. Micron alleged that UMC illegally transferred its memory designs in a chip manufacturing deal between UMC and Jinjiang-based Fujian Jinhua Integrated Circuit Co. However, in 2020, UMC pleaded guilty in San Francisco federal court and admitted to trade-secret theft and agreed to pay a $60 million fine.
