According to a number of ** reports in the United States, Micron Technology (Micron), a U.S. memory chip company, has reached a global settlement agreement with Fujian Jinhua Integrated Circuit, referred to as "Fujian Jinhua"), and the two companies will withdraw their respective lawsuits against each other worldwide and end all litigation between the two parties. The settlement means that the intellectual property cases that originated in 2016 and involved Micron Technology, UMC and Fujian Jinhua are all closed.
Cause of the incident
In 2016, Fujian Electronic Information Group and Jinjiang Industrial Development and Investment Group jointly funded and cooperated with Taiwan UMC to establish a DRAM memory manufacturing enterprise Fujian Jinhua Integrated Circuit Co., Ltd. referred to as "Fujian Jinhua".
After the signing of the agreement, three Micron executives left to join UMC. Subsequently, Micron Technology sued UMC and Fujian Jinhua respectively in 2017, alleging that the two companies were suspected of stealing Micron Technology's trade secrets. Over the years, Micron Technology has launched lawsuits in many places around the world to pursue infringement by UMC and Fujian Jinhua, while Fujian Jinhua sued Micron Technology for alleged infringement of products sold in China.
In 2021, UMC and Micron announced a settlement, and U.S. prosecutors agreed to drop the prosecution of UMC on charges such as economic espionage. According to a number of ** reports in the United States, a spokesman for Micron Technology Company said in an email a few days ago that the company and Fujian Jinhua reached a global settlement agreement, and the two sides will end the previous lawsuits against each other and withdraw the lawsuit against each other worldwide.
Since the beginning of this year, Micron Technology has begun to repair relations with China. In June, Micron announced that it would increase its investment in China, with plans to invest more than 4.3 billion yuan in the company's Xi'an plant over the next few years. In November, Micron CEO Sanjay Mehrotra visited China and expressed his willingness to continue to expand investment in China.
On November 1, Minister of Commerce Wang Wentao met with Sanjay Mehrotra (official website of the Ministry of Commerce).
Micron's performance continued to be under pressure
Since the beginning of 2022, affected by factors such as slowing demand, increasing demand, and intensifying competition, the memory chip market has entered a downward cycle, and storage giants have experienced a considerable degree of performance decline or even losses. As one of the giants in the global storage industry, Micron Technology's performance in the past year is no exception.
According to the company's recently released financial performance report for the first quarter of fiscal year 2024 (September to November), its revenue was 47US$300 million, a year-on-year increase of 16%;The net loss was 12$300 million, compared to a net loss of $14 in the same period last year$300 million converged, with a loss per share of 0$95. This is also the fifth consecutive quarter that the company has posted losses.
Micron Technology's single-quarter revenue performance.
Micron Technology's single-quarter net profit performance.
Chinese mainland is Micron's third largest market. According to Micron's 2023 annual report (September 2022 to August 2023), the company's revenue from Chinese mainland was 2.2 billion yuan, accounting for 14%.
But with the recovery of the global semiconductor industry, Micron's stock price is also ** this year, up 74% year-to-date.
Micron Technology stock price action.
Although Micron is still mired in losses, the company's performance is gradually improving on a sequential basis. Looking ahead to the second quarter of fiscal 2024, Micron expects revenue of $5.1 billion to $5.5 billion, beating analysts' expectations of 49.5 billion$900 million.
Sanjay Mehrotla, CEO of Micron Technology, said: "We expect business fundamentals to improve in 2024 and industry TAM to expect a breakthrough in 2025. "Our high-bandwidth memory for data center AI applications demonstrates the strength of our technology and product roadmap, and we are well positioned to capture the tremendous opportunities that AI brings to the end market." ”
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