What happened
Shares of United Microelectronics (UMC +1.25%) were up by 10% as of 3 p.m. EDT today, after the company said it expects to settle a criminal lawsuit soon. The U.S. Department of Justice (DOJ) had filed the lawsuit in 2018 alleging that the company was part of a conspiracy to steal trade secrets from Micron Technology (MU +5.00%).
So what
In a regulatory filing, United Microelectronics said that it has been negotiating a settlement with the DOJ and "anticipates reaching a resolution with DOJ in the foreseeable future." The tech company has proposed a deal in which it would plead guilty to a lesser charge and pay a $60 million fine.
Image source: Getty images.
The DOJ's initial complaint had alleged that the company engaged in economic espionage with a company owned by the Chinese government, Fujian Jinhua Integrated Circuit, to secure Micron's intellectual property related to the development and manufacturing of DRAM memory. Micron is the only U.S.-based manufacturer of DRAM memory.
Now what
United Microelectronics notes that the discussions are ongoing and that the proposed settlement still needs to be approved by the court. The company added that it has recorded a $60 million accrual associated with the monetary penalty.
