Micron sees just 1 percent hit on revenue from China ban

Micron sees just 1 percent hit on revenue from China ban

Micron sees just 1 percent hit on revenue from China ban

A Chinese court temporarily banned Micron Technology chip sales, cutting the U.S. company off from the world's largest semiconductor market, Taiwanese rival United Microelectronics Corp said.

Micron engages in the manufacture and provision of semiconductor systems internationally.

A Chinese court has temporarily barred Micron Technology Inc from selling 26 chip products in the mainland in a ruling over a patent infringement case with Taiwan's United Microelectronics Corp (UMC), UMC said. UMC invests heavily in its intellectual property and aggressively pursues any company that infringes UMC's patents.' UMC filed patent infringement lawsuits against Micron with the mainland China courts in January, 2018, covering three areas, including specific memory applications related to DDR4, SSD and memory used in graphics cards. Only this week, the company said it was planning to list its HeJian Technology Corp., its China operations, on the Shanghai Stock Exchange.

UMC also requested the court to order potential defendants to stop manufacturing, processing, importing, and selling the allegedly infringing products.

The two chipmakers have been at loggerheads since December when Micron filed a civil lawsuit in the state of California, accusing UMC of secret infringement of intellectual property related to its DRAM chips.

Micron and UMC are also battling it out in Californian courts. UMC is building a DRAM production plant in cooperation with JHICC, a state-owned enterprise under Fuzhou City of China. The Fuzhou Court issued this preliminary ruling before allowing Micron an opportunity to present its defense. The country is the world's largest market for chips but China's homegrown suppliers are dwarfed by American rivals. In 1Q18, Micron's NAND Flash revenue ranked the fourth worldwide with a market share of 12%, following 37% of Samsung, 19% of Toshiba and 15% of WDC. However, that may not be good news to Korean semiconductor companies.

"In DRAMs, Korean companies have a wide technological gap with its Chinese competitors".

Customers can buy Micron products from original equipment manufacturers, retailers, distributors, or get them directly from the company.

The Court has not yet indicated when a final ruling on the case can be expected, nor for how long the injunction on sales is valid. The US and China have made a decision to impose an additional 25 percent tariff on their respective imported products whose total amount hits US$50 billion each per year starting on June 6.

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