Micron and UMC's Trade Secrets Debacle is a Red Flag

Taiwanese regulators recently indicted UMC (NYSE: UMC), the country's second largest contract chipmaker, and three of its employees for the alleged theft of trade secrets from U.S. memory chipmaker Micron (NASDAQ: MU). Two of the UMC employees, Ho Chien-ting and Wang Yong-ming, previously worked at Micron's local unit.

Regulators claim that Ho and Wang, who respectively became the technical managers of special projects and components at UMC, illegally replicated Micron's manufacturing techniques for its DRAM business in China. UMC runs that business as a joint venture with Chinese chipmaker Fujian Jin Hua Integrated Circuit.

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Source: Fool.com