Micron receives Chinese ban, sees 1 pct impact on quarterly revenue

Micron receives Chinese ban, sees 1 pct impact on quarterly revenue

Micron said UMC's and Jinhua's patent infringement claims in China were filed in retaliation for the company's US civil lawsuit against the two companies.

The sales ban ratchets up trade tensions between Washington and China over wide ranging issues including intellectual property, autos and soybeans.

The company also issued a statement on Tuesday saying the court had ruled against Micron. (UMC), accused Micron in January in China of making products that violate their separate patents.

A Chinese court temporarily stopped America's largest memory-chip maker, Micron Technology Inc.

Micron is the world's fourth-biggest semiconductor supplier by sales revenue following South Korean firms Samsung and SK Hynix and United States chip giant Intel.

The Fuzhou Intermediate People's Court of the People's Republic of China issued the injunction against Micron for infringing patents for PRC 26 DRAM and NAND-related SSDs and memory sticks. The court declined to comment on the case and said injunctions were not posted publicly. UMC's comprehensive foundry solutions enable chip designers to leverage the company's sophisticated technology and manufacturing, which include world-class 28nm High-K/Metal Gate technology, 14nm FinFET volume production, specialty process platforms specifically developed for AI, 5G and IoT applications and the automotive industry's highest-rated AEC-Q100 Grade-0 manufacturing capabilities for the production of ICs found in vehicles.

Last year Micron sued UMC and its partner, Fujian Jinhua Integrated Circuit Co, claiming they stole memory chip trade secrets.

It said in June the case could "have a material adverse effect" on its business, requiring changes to its China operation.

As evidence, Micron cited the use of Micron DRAM technology code names at a UMC and Jinhua recruitment fair for RAM chip experts in Silicon Valley in October 2016 and its discovery that its employees poached by UMC had copied confidential information before leaving the company. Micron will continue to aggressively defend against these unfounded patent infringement claims while continuing to work closely with its customers and partners.

Analysts said the ruling would bolster Micron's well-established rivals. If the ban is enacted, Micron's competitors, including Samsung, SK Hynix, WDC, Intel, Toshiba and the new entrant YMTC would be benefited.

UMC shares rose as much as 3.9 percent on Wednesday, before ending unchanged.

As China accounted for about 50 percent of Micron's revenue in 2017, the ruling sent Micron shares plunging by 5.5 percent on Wall Street overnight.