UMC announced yesterday that it suspends cooperation with Jinhua after the US Department of Commerce imposed an emergency ban on Chinese storage chip manufacturer Fujian Jinhua Integrated Circuit.

The cooperation between Jinhua and UMC began in 2016. In May 2016, UMC announced a cooperation agreement with Fujian Jinhua Integrated Circuit. The two parties jointly developed DRAM technology, the technology was provided by UMC, and Jinhua paid to UMC. The DRAM technology development will be jointly owned by both parties, and Jinhua will produce DRAM products at its 12-inch fab.

According to the UMC statement, it was decided to suspend cooperation with Jinhua because of the receipt of the Taiwan External Trade Development Council letter, and said that it would resume cooperation with Jinhua after the ban was lifted.

In addition, there is news in the industry today that Micron has obtained clear evidence and accused UMC of economic espionage in the United States. This is undoubtedly an upgrade of the lawsuit between Micron and UMC, Jinhua.