Micron and UMC Announce Global Settlement

Rhea-AI Summary

United Microelectronics Corporation (NYSE: UMC) and Micron Technology (Nasdaq: MU) have reached a global settlement, withdrawing mutual complaints. UMC shall make a one-time payment to Micron. Both companies aim for future business collaboration. Micron, a major player in the semiconductor sector, boasts over 47,000 patents and emphasizes IP protection for competitive advantage. UMC specializes in logic and specialty semiconductor fabrication, having a capacity of nearly 800,000 wafers per month across its 12 fabs.

Positive

• Settlement may enhance business relations between UMC and Micron.
• Future collaboration could open new markets and opportunities.

Negative

• Undisclosed one-time payment might impact UMC's short-term liquidity.

HSINCHU, Taiwan--(BUSINESS WIRE)-- United Microelectronics Corporation (TWSE: 2303; NYSE: UMC) and Micron Technology, Inc. (Nasdaq: MU) today announced a settlement agreement between the two companies worldwide. The companies will globally withdraw their complaints against the other party, and UMC will make a one-time payment of an undisclosed amount to Micron. UMC and Micron look forward to engaging in mutual business cooperation opportunities.

Micron is one of the world’s largest semiconductor companies with more than 40 years of technology leadership and innovation, over 47,000 lifetime patents granted and significant investment in leading edge manufacturing and processes. IP protection is fundamental to Micron’s ability to remain competitive as the company continues to drive innovation that is essential to the data economy.

UMC is a leading global semiconductor foundry company focusing on the fabrication of logic and specialty products for all major sectors of the electronics industry. UMC has 12 fabs with combined capacity close to 800,000 wafers per month (8-in equivalent). UMC continuously implements and refines its policy and procedures for trade secret protection while providing high quality products and services to its customers.

About UMC

UMC (NYSE: UMC; TWSE: 2303) is a leading global semiconductor foundry company. The company provides high quality IC fabrication services, focusing on logic and various specialty technologies to serve all major sectors of the electronics industry. UMC’s comprehensive IC processing technologies and manufacturing solutions include Logic/Mixed-Signal, embedded High-Voltage, embedded Non-Volatile-Memory, RFSOI and BCD etc. Most of UMC's 12-in & 8-inch fabs with its core R&D are located in Taiwan, with additional ones throughout Asia. UMC has a total of 12 fabs in production with close to 800,000 wafers per month (8-inch equivalent) combined capacity, and all of them are certified with IATF-16949 automotive quality standard. UMC is headquartered in Hsinchu, Taiwan, plus local offices in the United States, Europe, China, Japan, Korea, and Singapore, with 19,500 employees worldwide. For more information, please visit: https://www.umc.com.

Note from UMC Concerning Forward-Looking Statements

Some of the statements in the foregoing announcement are forward-looking within the meaning of the U.S. Federal Securities laws, including statements about introduction of new services and technologies, future outsourcing, competition, wafer capacity, business relationships and market conditions. Investors are cautioned that actual events and results could differ materially from these statements as a result of a variety of factors, including conditions in the overall semiconductor market and economy; acceptance and demand for products from UMC; and technological and development risks. Further information regarding these and other risks is included in UMC’s filings with the U.S. Securities and Exchange Commission. UMC does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211125006194/en/

Media Contact

UMC Corporate Communications

Michelle Yun

+886-2-2658-9168 ext. 16951

michelle_yun@umc.com

Source: United Microelectronics Corporation

FAQ

What was the settlement agreement between UMC and Micron?

UMC and Micron have agreed to withdraw complaints against each other and UMC will make a one-time undisclosed payment to Micron.

How does the settlement affect UMC's stock?

The settlement may have mixed effects on UMC's stock, with potential impacts on liquidity due to the one-time payment.

What is the capacity of UMC's semiconductor fabs?

UMC has a combined capacity of nearly 800,000 wafers per month across its 12 fabs.

What is Micron's role in the semiconductor industry?

Micron is one of the world's largest semiconductor companies, known for its extensive patent portfolio and innovation.

How might UMC and Micron's collaboration benefit investors?

Potential future cooperation could lead to new business opportunities and market expansion, which may positively influence shareholder value.