UMC to Appeal the Court Decision on the Micron Case

United Microelectronics Corporation (UMC) said it intends to appeal an adverse ruling issued by the District Court of Taichung (Taiwan) in a suit filed on the basis of allegations made by Micron, a DRAM market leader. The suit alleged that UMC, two of its current employees and a former employee engaged in the misappropriation of trade secrets.

In order to better protect customer intellectual property rights, including trade secrets, UMC has established mechanisms to control and monitor the classification and storage of confidential information; regularly implements compliance training on the protection of intellectual property rights; and conducts regular internal audits to ensure the full compliance of its daily operations with its policy and procedures. UMC is also continually upgrading its rigorous management system of intellectual property rights.

The DRAM process development project at issue was approved by Investment Commission, Ministry of Economic Affairs of the Taiwan government, and the technology was developed on the foundation of one of UMC’s own proven processes. More than 300 engineers, many of whom were veterans of UMC’s long-standing and experienced workforce, worked on UMC’s own DRAM manufacturing process for more than two years.

UMC said it did not violate the Trade Secret Act. The company believes that the appellate court will be able to ascertain the facts and rule accordingly. In its appeal against the ruling and the excessively disproportionate penalty, UMC will cite many irregularities in both the investigation and the case itself that ran afoul of the Code of Criminal Procedure, such as: the use of misleading interrogation methods; failure to record statements favorable to UMC in interrogation transcripts; and forensic irregularities with electronic and other evidence.

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