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by hiiq 2768 days ago
"a stunning Chinese-backed effort that pilfered … patented American technology."

Why, pray tell, if its patented did they have to steal it?

Surely they just had to download and read the patent from the chinese patent office, in Chinese no less?

1 comments

Let's look at some of the facts of the case at the center of the report. This is HN after all.

1. The Chinese company paid close to $300 million to UMC, a Taiwanese fab, for DRAM technology. The deal is reportedly structured highly favorable to UMC with larger future milestone payments upon delivery.

2. The transfer was approved by the Taiwan government. Taiwan is highly sensitive about technology transfer to China. It is at the 32nm node, a relatively dated technology node.

3. UMC is the 3rd largest fab in the world capable of 14nm logic fabs. Logic fabs used to be much more technologically sophisticated than DRAM fabs. Indeed before the great DRAM price war Taiwan had quite a few small DRAM fabs surviving on second hand equipment from logic fabs and logic fabs often tested their fab startup by making DRAMs (with their density DRAMs are a great way to flush out bugs in the manufacturing process). However DRAMs are very price sensitive commodities -- being capable of making DRAMs and capable of making profits from making DRAMs are two entirely different things.

4. Micron bought Rexchip of Taiwan, which was one of those standalone DRAM manufacturers that didn't survive. All the employees accused of theft are Taiwanese and former employees of Rexchip.

5. The Chinese company, Jinhua, had earlier out-muscled Micron in Chinese court, using patents transferred from UMC to ban some Micron products for sale in China.

6. LA Times started with: "It was the great microchip heist — a stunning Chinese-backed effort that pilfered as much as $8.75 billion in patented American technology." But it later said: "Prosecutors estimate the information was worth between $400 million and $8.75 billion."