Chinese chipmaker Yangtze Memory Technologies Co (YMTC) has taken legal action against U.S. rival Micron Technology, claiming that Micron has infringed on eight of its patents. The lawsuit was filed at the U.S. District Court for the Northern District of California on November 9, alleging that Micron used YMTC’s patented technology to gain and protect market share without paying its fair share for using the inventions. YMTC, a much smaller rival, last year faced restrictions from the U.S. government which barred it from purchasing certain American components. The U.S. has been increasing restrictions on exporting chipmaking technology to China in recent years due to security concerns.
Micron, which competes with other major chipmakers such as Samsung Electronics and SK Hynix, had faced a dispute in 2018 involving a Chinese state-backed chipmaker and a temporary sales ban in China. China was once Micron’s biggest market, but its share of revenue from China has shrunk significantly in recent years. Despite the legal battle with YMTC and declining market share in China, Micron has expressed its commitment to the Chinese market by announcing a significant investment in its chip-packaging plant in Xian city and participating in a trade expo in Shanghai. The ongoing legal dispute and the evolving market dynamics in China may have important implications for both companies in the global chipmaking industry.
