Micron, UMC to withdraw IP complaints against each other
Reuters
Published Nov 25, 2021 06:27PM ET
Updated Nov 25, 2021 08:16PM ET
(Reuters) -U.S. chipmaker Micron Technology Inc (NASDAQ:MU) and Taiwanese peer United Microelectronics Corp (UMC) have agreed to withdraw complaints against each other following a years-long legal dispute over intellectual property (IP).
UMC will make a onetime payment to Micron of an undisclosed amount, the pair also said in separate statements on Thursday, without elaborating on reasons for their withdrawal agreement.
Micron 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.
Their agreement to withdraw the complaints comes amid broader concerns from the U.S. government about technology theft, particularly in relation to China.
Last year, the United States fined UMC $60 million after the Taiwanese firm pled guilty to stealing Micron designs and sharing them with China's state-backed Fujian Jinhua, which is building a memory chip manufacturing plant.
UMC at the time said management was unaware of unauthorised actions of three employees who had previously worked for Micron.
As part of the guilty plea, the U.S. Department of Justice dismissed other allegations against UMC, including conspiracy to commit economic espionage.
The United States also indicted Fujian Jinhua for allegedly using the trade secrets in its chip designs. Fujian Jinhua has denied wrongdoing.
In late 2018, the U.S. Department of Commerce added Fujian Jinhua to its so-called entity list, in effect barring U.S. companies doing business with it. The Chinese firm has since halted chip production plans, analysts have said.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.