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China ban a foul claims Micron

by on06 July 2018

But it should not do too much harm

Micron played down the likely impact on its business of a temporary Chinese ban on some chip sales but said it was unfair and would appeal.

The firm estimates that the ban imposed by a Chinese court in a patent infringement lawsuit would weaken quarterly revenue by just one percent.

Shares in the sector had been shaken on Tuesday by the first reports of the ruling, which added to a growing list of intellectual property disputes between Washington and China in the technology sector.

Micron said the ruling by a Fuzhou Court in a lawsuit filed by rivals UMC and Fujian Jinhua Integrated Circuit Co temporarily bans it from selling some memory chips and solid-state drives in China.

The chipmaker said it would comply with the ruling, but would request the court to reconsider or stay its decision.

Micron’s general counsel Joel Poppen said the Fuzhou Court issued this preliminary ruling before allowing Micron an opportunity to present its defence.

The lawsuit followed Micron’s complaint in December against Chinese government-backed Fujian and UMC in a California court alleging misappropriation of its trade secrets and other misconduct.

China is trying to build its own semiconductor industry as part of its “Made in China 2025” strategy and as it seeks to lower its reliance on foreign companies, many of them US-based.


Last modified on 06 July 2018
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