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The China Initiative (from 4)
otiations to develop a DRAM process for
Chinese chip maker Fujian Jinhua — a
company which was also indicted with
UMC.
DRAM development
Chen hired two other Chinese nation-
als to join the DRAM development team.
The two, according to the Justice Dept.,
brought computers with Micron’s confiden- This is UMC headquarters in Taiwan. The company pled guilty to
tail DRAM process, and UMC employees infringing Micron’s intellectual property. (UMC)
were given access to the Micron data.
tion market for chips, three related fac-
Later, Chen became president of Fujian tors have now made it more important for
Jinhua and took charge of the company’s companies to understand the opportunity
DRAM production. and proactively refresh their China strate-
gies. The China Initiative (from 3)
In October 2020, UMC pleaded guility in
federal court to trade secrets theft and Reshape domestic market
agreed to pay the Justice Dept. $60 million “First, the government is actively attempt-
for infringing Micron’s patents. ing to reshape the domestic semiconductor
market and assist local companies in be-
About a year later, in November 2021, coming national champions.
UMC and Micron settled, with UMC mak-
ing a one-time payment of an undisclosed “Second, Chinese consumers and compa-
amount. nies are becoming increasingly important
to the growth of the global semiconductor
Number One wannabee mar market.
China’s goal to be the largest, most per- “Third, Chinese capital — from both gov-
vasive seller of semiconductors (and other ernment and private sources, is actively
technology) in the world is no secret. It is pursuing merger, acquisition, investment,
evident from the country’s latest Five Year and partnership opportunities worldwide.”
Plan and from statements by its leaders.
Goal on steroids
Observers have been keeping a sharp eye What was true about China’s technology
on China’s progress in technology for de- goals in 2015, has become China’s insis-
cades.
tent demand on steroids today.
In November 2015, business consultant Although China is still a net importer of
McKinsey noted, “Business in China has semiconductors, this is changing at light-
become a top-of-mind issue for semicon- ning speed. A recent publication from the
ductor executives and investors over the Semiconductor Industry Association re-
past year. ports that China’s share of global semicon-
ductor sales has surpassed Taiwan, and is
“ While traditionally an important consump- to page 8
