China court 'bans sales' of chips from United States firm Micron

China court 'bans sales' of chips from United States firm Micron

On Tuesday, Taiwanese chipmaker United Microelectronics (UMC) announced that the Fuzhou Intermediate People's Court had ruled that Micron had infringed on its patents.

The Fuzhou Intermediate People's Court issued a preliminary sales injunction against Micron that prevents it from selling 26 semiconductor products, including DRAM and NAND flash memory chips, in China, contract chip manufacturer UMC said in a statement late on Tuesday.

In December, Micron introduced a lawsuit in United States District Court for the Northern District of California that accused UMC of stealing trade secrets and giving the technology to Jinhua.

UMC, which is scaling up its China business, countersued in January, filing a patent infringement lawsuit against Micron in China, covering three areas, including specific memory applications and memory used in graphics cards.

What just happened? United States semiconductor giant Micron has had sales of its chips temporarily banned in China by one of the country's courts.

China's aim may not be to bar shipments of Micron's chips, instead the ruling may be part of a strategy to push it into a partnership with Chinese semiconductor makers, which could speed up the country's internal chip industry development, according to Stifel Nicolaus analyst Kevin Cassidy.

As such, Micron may drop further as the downward pressure from two cycles converge, possibly into October. Micron, the largest American maker of memory chips, recently confirmed that it was under investigation, sparking fears that it would become entangled in the mushrooming trade conflict between China and U.S.

Micron said it had not received the injunction and could not comment.


The products impacted by the ban are the ones that Micron sells through retail outlets and represents a small portion of the chipmaker's revenue, Morgan Stanley analysts said in a client note.

The move comes after UMC took Micron to the Chinese courts over patent infringement claims.

Micron shares closed down 5.5 per cent at $51.48, while Nvidia finished 2 per cent lower.

The world DRAM market is led by Samsung Electronics with a market share of 45%, followed by SK Hynix (28%) and Micron (14%).

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

UMC co-president Jason Wang, commented, "UMC is pleased with today's decision".

UMC shares rose as much as 3.9 percent on Wednesday, before erasing a chunk of the gains to be up 1 percent.

Other chipmakers also gained. When the ban on the sale of Micron products in China is realized, the ban is expected to benefit the Korean semiconductor industry.

Related Articles

  • Serena Williams beats Mladenovic to give notice that comeback title is on

    Serena Williams beats Mladenovic to give notice that comeback title is on

    Zverev also erased a 2-1 deficit three times to reach the quarterfinals of the French Open, his best result at a Grand Slam . She then broke back to level the third set at 4-4, but Rodina immediately earned another break and served out the victory.
    Kevin Durant: Set to re-sign with Warriors

    Kevin Durant: Set to re-sign with Warriors

    The first day of free agency feels like the holiday season for certain players and certain National Basketball Association teams. Which of those players have been signed so far and by whom? But as we near the second anniversary of Durant's.
    Merkel Hopes New EU Migrant Plan Will Quell Internal Dissent

    Merkel Hopes New EU Migrant Plan Will Quell Internal Dissent

    Earlier this year, when he assumed his role as Interior Minister, he said: "Islam does not belong in Germany". Merkel is opposed to Seehofer's plan, which she said would cause a domino effect in Europe.
  • Jordan Pickford: England penalty hero receives praise after Colombia shootout win

    Jordan Pickford: England penalty hero receives praise after Colombia shootout win

    Kieran Trippier has been hailed for his displays thus far and his crossing ability should come to great use for England against Colombia .
    North Korea Could Dismantle Nuclear Program within a Year

    North Korea Could Dismantle Nuclear Program within a Year

    Responding to the report, Trump said, "I think they (North Koreans) are very serious about it (denuclearisation)". Bolton said. "New building didn't appear to begin in earnest until April this year, around the time Mr.
    Spain 1-1 Russian Federation

    Spain 1-1 Russian Federation

    He also ensured the game needed 30 extra minutes with back-to-back diving saves in the 85th to deny substitutes Iniesta and Aspas. The 34-year-old Barcelona midfielder came off the bench and nearly won the game with an 85th-minute shot well saved by Akinfeev.
  • Halting Iranian oil export is an illusion: Jahangiri

    Brent for September settlement advanced $1.05 to $78.35 a barrel on the London-based ICE Futures Europe exchange. Donald Trump is urging oil producing countries except Iran to boost output.
    Cedi Osman sends goodbye message to LeBron James, Lakers

    Cedi Osman sends goodbye message to LeBron James, Lakers

    While the roster was pretty much depleted with James, theres only one remaining player of interest for the Bulls: Kevin Love . The Lakers' next steps are unclear , and though James may be patient about building a contender, he's 33 years old.
    With LeBron, Lakers suddenly a betting favorite

    With LeBron, Lakers suddenly a betting favorite

    If James would have signed with Philly he would have helped improve an already stingy Sixers defense, which finished 11th in OPG. Both LeBron James and George opted out of their respective deals well before the June 29th deadline.
  • Pompeo meets North Koreans, hopes to 'fill in' details on denuclearisation

    Pompeo meets North Koreans, hopes to 'fill in' details on denuclearisation

    Kim Eui-keum, a spokesman for the presidential Blue House, would not respond directly to the report when asked about it on Friday. This is his third trip to North Korea. "And other things have happened including last week, taking down the anti-US propaganda".
    Malaysia’s Najib Razak charged with corruption

    Malaysia’s Najib Razak charged with corruption

    Najib has been investigated over suspicions that he may have siphoned off monies linked to a state investment fund called 1MDB. Raids on homes linked to Najib in May have unearthed cash, luxury good and valuables worth more than RM1 billion.
    Max Verstappen Wins Austrian Grand Prix Amidst Mercedes Misfortune

    Max Verstappen Wins Austrian Grand Prix Amidst Mercedes Misfortune

    On lap 53, he pitted again for super-softs, dropping a place to fifth behind Ricciardo, who nearly immediately slowed and stopped. Max Verstappen duly obliged, as did Kimi Raikkonen with Hamilton joining the race just ahead of fierce rival Vettel.