Monday, 24 September, 2018

China court bans Micron chip sales in patent case

Micron Stock Drops On China Court Ruling To Ban Its Memory Chips Micron shares plummet after China bans chip sales
Laurie Berry | 07 July, 2018, 04:00

UMC shares got a boost from the Chinese court ruling soon after the market opened, and while their momentum was compromised to some extent by the lingering trade friction between the United States and China, the stock still stayed in positive territory.

Micron is the world's fourth-biggest semiconductor supplier by sales revenue following South Korean firms Samsung and SK Hynix and USA chip giant Intel.

Micron is disappointed with the ruling by the Fuzhou Intermediate People's Court. Washington says the measures are a response to intellectual property theft by China.

Micron's Taiwan-based rival United Microelectronic Corp.

China has been trying to build its own semiconductor industry as part of its "Made in China 2025" strategy and lower dependency on foreign companies.

Nadal heads into the third round
Serena Williams , the seven-time Wimbledon victor , is seeded 25th after her tentative return from the birth of her first child. The world number 11 made numerous unforced errors which allowed Rodina to come back into the match and take the first set.

Micron has been one of the firms caught in the middle.

The civil lawsuit filed by Micron against UMC and Jinhua in California is consistent with Micron's commitment to aggressively protect and enforce its trade secrets and intellectual property worldwide. Micron, naturally, disagrees with UMC's claims, and in an interesting twist has issued a statement of its own claiming to have not yet been served with any such injunction. UMC has not commented on the poaching allegations. The U.S. case is still being heard. This time, though, it's in court for a different reason: It has accused U.S. rival Micron of infringing its patents on memory technology, and has been granted an early win in the form of a temporary injunction against the company.

"In today's environment, because of the tensions between China and the United States", he added, local judges may feel more comfortable granting an injunction knowing they would "face less pressure from the higher courts".

China is the largest importer of memory products, consuming 20 percent of the world's DRAM. "Micron believes the ruling issued by the Fuzhou Court in Fujian Province is inconsistent with this proclaimed policy". UMC's comprehensive foundry solutions enable chip designers to leverage the company's sophisticated technology and manufacturing, which include world-class 28nm High-K/Metal Gate technology, 14nm FinFET volume production, specialty process platforms specifically developed for AI, 5G and IoT applications and the automotive industry's highest-rated AEC-Q100 Grade-0 manufacturing capabilities for the production of ICs found in vehicles.

And if Chinese chipmakers advance to the technological capabilities of South Korean chipmakers in the future, "there could be a stronger pressure or sanction on Korean companies", akin to the Micron ban, the insider said.

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