YMTC Legal Action Against Micron
Yangtze Memory Technologies Co (YMTC), a leading Chinese chip manufacturer, has recently filed a lawsuit against Micron Technology (MU.O), a major U.S. rival, alleging the infringement of eight patents.
The legal action, initiated on November 9 and directed at Micron and its subsidiary, Micron Consumer Products Group, asserts that Micron utilized YMTC’s patented technology to counteract competition and consolidate its market presence. The lawsuit underscores Micron’s purported failure to provide fair compensation for the utilization of these patented innovations.
YMTC’s Official Statement
In response to queries, YMTC issued a statement to Reuters on Monday, stating, “While the specifics of ongoing litigation cannot be disclosed, YMTC has recently filed a lawsuit against Micron Technology, Inc. in the U.S. District Court for the Northern District of California. The lawsuit pertains to the infringement of our company’s patents related to the design, manufacture, and operation of 3D NAND technology. We anticipate a prompt resolution of this matter.”
Conversely, Micron chose not to comment on the ongoing legal proceedings.
Micron, a significant player in the production of DRAM chips and NAND flash memory chips, competes on a global scale with entities such as South Korea’s Samsung Electronics (005930.KS) and SK Hynix (000660.KS), as well as Japan’s Kioxia, a unit of Toshiba (6502.T). In contrast, YMTC, a smaller contender, faced restrictions last year, preventing it from procuring specific American components.
U.S. Restrictions and China’s Response
In recent years, the U.S. has tightened restrictions on exporting chipmaking technology to China, citing national security concerns. China, in May, declared that Micron products failed a network security review, leading to a prohibition on their purchase by operators of critical infrastructure.
Micron encountered a significant dispute in 2018 with Chinese state-backed chipmaker Fujian Jinhua, accused (and denying) of trade secret theft. Concurrently, Micron’s primary products faced a temporary sales ban in China.
China, once constituting half of Micron’s $20 billion revenue in fiscal 2017, witnessed a reduction to 16% in 2022. This decline coincided with Micron’s strategic decision to shutter its DRAM operations in Shanghai.
Despite these challenges, Micron reaffirmed its commitment to the Chinese market in June, announcing a substantial 4.3 billion yuan ($590 million) investment in its chip-packaging plant in Xian city. Notably, the company participated in a trade expo in Shanghai this month, marking its inaugural presence at the event.
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