Benzinga | Nov 26, 2021 12:31PM EST

UMC To Make One-Time Undisclosed Payment To Settle With Micron

Taiwan's United Microelectronics Corp (NYSE:UMC) and U.S. chipmaker Micron Technology Inc (NASDAQ:MU) have entered a settlement agreement. UMC will make an undisclosed one-time payment to Micron and resolve all competing claims between them.

* The parties also look forward to engaging in mutual business cooperation opportunities.

* The case involved alleged illegal transfer of Micron's memory designs in a chip manufacturing deal between UMC and Jinjiang-based Fujian Jinhua Integrated Circuit Co, Bloomberg reports.

* In 2020, UMC pleaded guilty in a deal with U.S. prosecutors, who agreed to drop economic espionage and conspiracy charges.

* UMC instead admitted to trade-secret theft and agreed to pay a $60 million fine.

* Following the move, Micron said it would continue to seek "full restitution" from UMC in a separate civil lawsuit.

* Price Action: MU shares traded lower by 3.61% at $83.12 on the last check Friday.