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US-China Technology Dispute: YMTC Files Lawsuit Against Micron

Jakarta, CNBC Indonesia In recent years, the United States (US) has restricted exports of chip manufacturing technology to China for security reasons. Now, it is China’s turn to accuse the US of stealing its technology.

Chinese chipmaker Yangtze Memory Technologies Co (YMTC) filed a lawsuit against US rival Micron Technology, alleging infringement of eight of its patents.

Previously, Xi Jinping’s government had blocked Micron Technology products from the Bamboo Curtain country.

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YMTC filed suit against Micron and its Micron Consumer Products Group unit on Nov. 9 in U.S. District Court for the Northern District of California.

According to the lawsuit, Micron turned to YMTC’s patented technology to fend off competition, as well as gain and protect market share.

It said Micron was not paid its fair share for using YMTC’s patented invention.

“While we cannot discuss the specifics of pending litigation, I can confirm that YMTC recently filed suit in the US District Court for the Northern District of California against Micron Technology, Inc for infringement of our company’s patents related to the design, manufacture and operation of 3D NAND technology,” YMTC said in a statement, quoted from ReutersTuesday (14/11/2023).

“We are confident that this problem will be resolved quickly,” the statement continued.

Micron declined to comment on the matter.

Micron makes DRAM chips and NAND flash memory chips and competes with South Korea’s Samsung Electronics and Japan’s SK Hynix and Kioxia.

Meanwhile, YMTC is a much smaller rival. YMTC has been banned by the US since last year from purchasing certain components from the US.

In May, China said Micron’s product failed a network security review and banned its purchase by major infrastructure operators.

China was once Micron’s biggest market, generating half of the company’s US$20 billion in revenue in fiscal 2017. That share shrank to 16% in 2022, the year the company closed its DRAM operations in Shanghai.

Micron said it remains committed to the Chinese market. Last June, it said it would invest 4.3 billion yuan in coming years in a chip packaging plant in the city of Xian, and showcased it for the first time at a trade fair in Shanghai this month.

[Gambas:Video CNBC]

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2023-11-14 14:00:00
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