Micron Makes Surprise Settlement With Fujian Jinhua. But Why?

After a five year long trial, with verdict finally pending, the settlement came out of the blue

On December 26 2023, China Daily reported that Micron and one-time China DRAM hopeful, Fujian Jinhua (aka FJICC) agreed to settle all outstanding law suits between them…

The comments came after a Micron spokeswoman said in a statement that "the two companies will each globally dismiss their complaints against the other party and end all lawsuits between them."

While this was front page news for China Daily, it failed to merit either an SEC filing or an official press release from Micron. This is surprising, given the high profile associated with the case which dates all the way back to 2018. To say that the settlement came out of the blue is an understatement. After all, co-defendants UMC already pled guilty in the same case back in 2021.

What’s the background to Fujian Jinhua? What triggered this case in the first place and what exactly was UMC’s involvement? As the five year long court case was finally at the stage where a verdict was imminent, why did Micron choose to settle, apparently with no terms attached? Let’s dig in…