Micron settles IP theft lawsuit with China: What the case is about and other details
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US-based chip giant Micron Technology Inc has settled its high-profile intellectual property theft lawsuit with China’s Fujian Jinhua Integrated Circuit Co. According to a report in Bloomberg, the agreement with the state-backed Chinese rival reportedly comes amid the US company’s efforts to mend ties with Beijing.
In a statement, Micron said that it has reached a global settlement agreement with Fujian Jinhua Integrated Circuit Co.“The two companies will each globally dismiss their complaints against the other party and end all lawsuits between them,” a Micron spokeswoman said in an email.
What is the IP theft case
In 2017, Micron sued Fujian Jinhua and its Taiwanese partner United Microelectronics Corp in the US. The company accused the two of stealing its memory chip trade secrets. A year later, Fujian Jinhua and UMC were charged with conspiring to steal trade secrets from Micron as the Justice Department steps up actions against China in cases of suspected economic espionage. The Trump administration added Fujian Jinhua to the so-called entity list, blocking sales of American components to the Chinese chipmaker.
UMC has since settled with Micron and pleaded guilty in a deal with US prosecutors, who agreed to drop serious charges of economic espionage and conspiracy for the alleged IP theft.
China banned Micron
The settlement comes months after the Chinese government in May barred Micron’s chips from “critical infrastructure” over cybersecurity concerns. The US too has been working with allies to prevent Beijing from obtaining the most advanced semiconductors and the latest chipmaking technologies.
Earlier this year, Micron warned that about half of its sales tied to China-headquartered customers may be impacted after China banned the chip maker from key infrastructure projects. In May 2023, China’s cyberspace regulator Cyberspace Administration of China (CAC) announced that America’s biggest maker of memory chips poses “serious network security risks”. In a statement, CAC said, “The review found that Micron’s products have serious network security risks, which pose significant security risks to China’s critical information infrastructure supply chain, affecting China’s national security.”
How Micron pacified China
Micron appears to have attempted to pacify Beijing, including promising to invest another 4.3 billion yuan ($602 million) in its Chinese chip-packaging plant and sending Chief Executive Officer Sanjay Mehrotra to visit the world’s second largest economy.
In a statement, Micron said that it has reached a global settlement agreement with Fujian Jinhua Integrated Circuit Co.“The two companies will each globally dismiss their complaints against the other party and end all lawsuits between them,” a Micron spokeswoman said in an email.
What is the IP theft case
In 2017, Micron sued Fujian Jinhua and its Taiwanese partner United Microelectronics Corp in the US. The company accused the two of stealing its memory chip trade secrets. A year later, Fujian Jinhua and UMC were charged with conspiring to steal trade secrets from Micron as the Justice Department steps up actions against China in cases of suspected economic espionage. The Trump administration added Fujian Jinhua to the so-called entity list, blocking sales of American components to the Chinese chipmaker.
UMC has since settled with Micron and pleaded guilty in a deal with US prosecutors, who agreed to drop serious charges of economic espionage and conspiracy for the alleged IP theft.
China banned Micron
The settlement comes months after the Chinese government in May barred Micron’s chips from “critical infrastructure” over cybersecurity concerns. The US too has been working with allies to prevent Beijing from obtaining the most advanced semiconductors and the latest chipmaking technologies.
Earlier this year, Micron warned that about half of its sales tied to China-headquartered customers may be impacted after China banned the chip maker from key infrastructure projects. In May 2023, China’s cyberspace regulator Cyberspace Administration of China (CAC) announced that America’s biggest maker of memory chips poses “serious network security risks”. In a statement, CAC said, “The review found that Micron’s products have serious network security risks, which pose significant security risks to China’s critical information infrastructure supply chain, affecting China’s national security.”
How Micron pacified China
Micron appears to have attempted to pacify Beijing, including promising to invest another 4.3 billion yuan ($602 million) in its Chinese chip-packaging plant and sending Chief Executive Officer Sanjay Mehrotra to visit the world’s second largest economy.
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