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Micron to exit China due to trade secret leakage

2/1/2022

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Having lost one third of its staff to local competitors, Micron chip design facility has decided it is time to throw in the towel, in part because it is worried about technology leakage. 

There is a global shortage of semiconductors and all businesses (and countries) are looking to secure supply. High demand exists therefore for skilled chip designers, and especially in China, where high salaries are on offer to lure staff away.

This is all high level political stuff with semiconductors causing tension between China and US, especially with reference to intellectual property and supply chain concerns.
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In 2018, the U.S. accused  a Taiwan-based chip maker  and China's Fujian of stealing trade secrets from Micron. The Taiwan business paid a $60m fine and Fujian denied the accusations, with China then blocking the sale of some of Micron's chips in The country. 

There are several other reasons of course, but reducing trade secret leakage is certainly a key issue for Micron and a reason for retrenchment, at risk of inadvertently supporting the growth of stronger Chinese competitors.

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    Author: John Pryor Exalt IP



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