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26 November 2021Patents

Micron and UMC settle semiconductor disputes

Semiconductor companies United Microelectronics Corporation (UMC) and Micron Technology have agreed to settle their years-long dispute over semiconductor IP.

As part of the settlement, announced yesterday, 25 November, Taiwan-based UMC will make a one-time payment of an undisclosed amount to Micron.

Back in July 2018, Fujian Intermediate People’s Court of China issued a preliminary injunction against US-based Micron, after UMC alleged that specific memory applications used in Micron’s products infringe its patents covering memory chips.

At the time, Micron claimed that the complaints were filed in “retaliation” to criminal indictments filed by Taiwanese authorities against UMC, and a civil lawsuit filed by Micron against UMC at the US District Court for the Northern District of California in December 2017, in which Micron accused UMC of misappropriating trade secrets.

Later in 2018, in another round of the US’ increasingly hostile dispute with China, US authorities unsealed an indictment against UMC and its China-based partner Fujian Jinhua Integrated Circuit Company, which accused the companies of stealing trade secrets owned by Micron Technology.

UMC, Fujian and three individuals were accused of stealing dynamic random access memory technology, a type of semiconductor memory used in computer electronics.

In October 2020, UMC pleaded guilty to criminal trade secret theft and was sentenced to pay a $60 million fine, in exchange for its agreement to cooperate with the government in the investigation and prosecution of its co-defendant.

The settlement brings to an end all disputes between the pair. Their announcements stated: “UMC and Micron look forward to engaging in mutual business cooperation opportunities.”

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