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Taiwan chipmaker UMC will pay to settle with Micron after 5-year legal dispute

World's 3rd largest contract chipmaker will make a one-time payment of an undisclosed amount

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(UMC photo)

(UMC photo)

TAIPEI (Taiwan News) — Taiwan-based contract chipmaker United Microelectronics Corp. (UMC) announced on Thursday (November 25) a worldwide settlement deal with U.S. semiconductor company Micron.

According to their joint statement, the two parties agree to withdraw complaints against each other. This puts to an end a legal dispute over intellectual property since 2017.

The world's third-largest contract chipmaker admitted criminal theft of secrets and was fined US$60 million for conspiring with a Chinese state-run company, Fujian Jinhuan Integrated Circuit Co. (福建晉華), to steal trade secrets from Micron.

UMC will make a one-time payment of an undisclosed amount to Micron as a settlement, and the two "look forward to engaging in mutual business cooperation opportunities," the statement read.

UMC has 12 fabs with a combined capacity close to 800,000 eight-inch equivalent wafers each month. The company said the next day the payment will have no major financial and business impact.