American semiconductor manufacturer Micron Technology has resolved a long-standing legal dispute with main Chinese competitor Fujian Jinhua Integrated Circuit. The companies have been in litigation since 2017 over accusations of intellectual property theft.
Micron has reached a global deal with Fujian Jinhua, which is backed by the Chinese state.
“Each of the two companies will comprehensively dismiss their complaints against the other and cease all litigation between them,” a Micron spokeswoman said in a letter to Bloomberg, declining to provide further details.
The agency attributes the agreement to the ban imposed by the Chinese government in May this year on the use of Micron chips in “critical infrastructure” companies for information security purposes.
In June, Micron warned that about half of its sales in China could be affected by actions by local governments, representing a “double-digit percentage” of the manufacturer’s global revenue.
At the same time, the company said that about a quarter of its revenue comes from companies based in China and Hong Kong.
Micron Technology sued Fujian Junhua and its Taiwanese partner United Microelectronics Corp. in 2017, accusing a competitor of stealing trade secrets related to the production of its memory chip.
In 2021, UMC reached a deal with US prosecutors and pleaded guilty. At the same time, the conflict with Fujian continued to this day.
Author:
Akhmed Sadulayev
Source: RB
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