Micron’s prosecution of United Microelectronics theft verdict: United Microelectronics was fined NT$100 million, three employees sentenced

Taiwan media  reported that the Taiwan Central District Court on the afternoon of June 12, ruled out on the case  Micron suing  United Microelectronics of steal trade secrets : He Jianting was sentenced to five years and six months, a fine of NT$5 million;

Micron's prosecution of United wire theft verdict: United electricity was fined NT$100 million, three employees sentenced2020-06-14

Lin Yuansen, executive president of Taichung District Court, said that according to the intellectual property case trial law, the litigation information involves trade secrets, the trial is not open. In addition, Lin Yuansen said that the case is heard by the court’s intellectual property team, and is a criminal civil trial. Unlike other criminal cases, the case can be appealed to the Intellectual Property Court if the defendant is found guilty, rather than to the Taichung High Court.

It is reported that the case can be traced back to the cooperation between United Microelectronics and Fujian Jinhua.

In February 2016, Fujian Electronic Information Group, Jinjiang Energy Investment Group Co., Ltd. and others co-financing, through technical cooperation with United Microelectronics, set up DRAM chip manufacturing enterprise Fujian Jinhua Electronics. Specifically, funded by Fujian Jinhua, commissioned by the United Microelectronics to develop DRAM-related technology.

According to public information, Jinhua provided 300 million U.S. dollars for the procurement of research and development equipment, and in accordance with the progress of the payment of 400 million U.S. dollars, the development of the technical achievements of the two sides, the completion of the overall technology, and then transferred to Jinhua for mass production.

In February 2017, Chen Zhengkun, senior vice president of United Microelectronics, became the general manager of Jinhua Integration. However, in September 2017, Micron filed a lawsuit in Taiwan against United, alleging that employees from Micron’s job-jumping to United Microelectronics stole Micron’s DRAM trade secrets and allegedly leaked Micron DRAM technology to United Microelectronics to help it develop 32nm DRAM.

In December 2017, Micron sued Jinhua and United Microelectronics In federal court in california, alleging that the company stole its intellectual property, including key technology for memory chips, through Micron’s Taiwan employees and delivered it to Jinhua in Fujian.

On January 19, 2018, Jinhua filed a lawsuit against Micron for a series of product infringements sold by Micron in China, and filed a petition with the Fuzhou Intermediate People’s Court on the same day, requesting that Micron immediately stop infringing Jinhua’s patent and seek compensation amounting to RMB 196 million.

On July 3, 2018, the Fuzhou Intermediate People’s Court ruled that Micron Semiconductor Sales (Shanghai) Co., Ltd. should immediately stop selling and importing more than ten Crucial Crucial SSDs, memory chips and related chips, and delete information such as advertisements and purchase links to the above-mentioned products from its website. At the same time, the ruling that Micron Semiconductor (Xi’an) Co., Ltd. immediately stopped the manufacture, sale and import of several memory-striped products.

On October 19, 2018, Chen Zhengkun, general manager of Jinhua Integration, entered from Taoyuan Airport and received a subpoena from a U.S. federal court commissioned by the U.S. Department of Justice from an official of Taiwan’s “Law Department.”

On October 30, 2018 (October 29, U.S., U.S.- time) the U.S. Department of Commerce announced that Chinese companies that have implemented export controls on Jinhua integration as of October 30 and are listed by the U.S. as “entities” for export controls, citing national security concerns. At the same time, the company said that its integration plan with Jinhua will not be affected and will continue to develop technology in accordance with the contract.

On October 31, 2018, the company announced that it had received a letter from the Taiwan Electrical and Electronics Industry Association forwarding the “International Trade Bureau” in the hope that the United Microelectronics would cooperate with the request of the U.S. Department of Commerce to control the Jinhua contract. After evaluation, the high-level management of United Microelectronics  decided to suspend  cooperation with Jinhua, and so on the whole matter of dust settled, and then with Jinhua integration consultation follow-up cooperation matters.

On November 1, 2018, the U.S. Attorney’s Office for the Northern District of California indicted Jin Hua and United Microelectronics for conspiring to steal Micron’s trade secrets, alleging that the three Taiwanese men involved, Chen Zhengkun, He Jianting and Wang Yongming, all of whom had served in Meiguang and were suspected of stealing Micron technology when they joined the company.

On November 3, 2018, Fujian Jinhua issued a statement in response to the statement that there was no theft of technology from other companies.

At the end of January 2019, the company announced the withdrawal of the DRAM project in Jinhua, Fujian Province, and recognized the loss of US$23 million in costs.

The Taiwan court’s decision comes as Micron filed a lawsuit in Taiwan in September 2017 against the company and its related employees, and the loss of the company in Taiwan may also adversely affect Micron’s lawsuit against United Microelectronics  and Jinhua in the United States.

According to the Taiwan Economic Daily, the Company said it would appeal in accordance with the law in response to a guilty verdict handed down by the Taiwan Central District Court on June 12 in a case against Micron and others in the case of United Microelectronics  for stealing trade secrets. The company stressed that it had not violated the business secrets law and would appeal the guilty verdict and the hefty fine in accordance with the law.