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UMC will pay US $ 60 million fine for cooperation with Chinese
22.10.2021 [18:07],
Gennady Detinich

As the analytical company TrendForce reports, the US Department of Justice has agreed to settle the litigation with the Taiwanese chip manufacturer UMC. The ruling with the decision is pending before the court and will soon be approved. As a defendant in the dispute, UMC will pay $ 60 million to the prosecution. This is a kind of fine for the intention to help the Chinese create their own production of DRAM memory.

The lawsuit arose out of an intellectual property theft charge. It was initiated two years ago by the US Department of Justice, first against the Chinese memory manufacturer JHICC, and then against the Taiwanese UMC. In May 2021, UMC entered into a technological cooperation agreement with JHICC, which was established in February of the same year.

In November 20221, the US government imposed export restrictions on the JHICC. The latter was suspected of violating Micron’s DRAM patent rights. At the same time, the US Department of Justice accused UMC of assisting JHICC in an attempt to illegally acquire Micron DRAM production technology. More details can be found in our news archive, but in general, it seems that the UMC has slipped out of the tenacious clutches of American justice.

Since this news was published by an analytical company, experts ask themselves what is the further strategy of UMC? Like GlobalFoundries, UMC refused to further develop technological processes. But unlike this competitor in the market of contract manufacturing of chips, UMC is stuck on a 28-nm process technology. Attempts to create its own 14-nm technical process have been discontinued, and now the company is expanding the 28-nm process technology as much as possible to all its factories – seven for processing 200-mm wafers and four for processing 300-mm. In total, at this stage, UMC can produce 340 thousand monthly. plates in 300 mm equivalent.

The main feature of the last couple of years and the period of the COVID-19 coronavirus pandemic march across the Earth is that the demand for production using 200-mm silicon wafers has grown almost to a shortage of supply. This created the need for power ICs, power controllers and display drivers, which were primarily produced and manufactured on silicon substrates with a diameter of 200 mm. In this regard, UMC turned out to be with trump cards in its hands, because it has as many as seven such factories. Such wealth, analysts are sure, next year will allow UMC to overtake GlobalFoundries and take the third place in the world market for contract manufacturing of semiconductors.

Above in the graph, you can see the current chart compiled by TrendForce, which shows the expected market shares of the world’s largest contractors and the shares of leading countries in this market in 2021 and 2021. Growing demand for 200mm orders, analysts add, promises to intensify acquisitions and mergers of core companies or related assets.

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