Chinese chipmaker Yangtze Memory Technologies Co (YMTC) has filed a lawsuit against U.S. rival Micron Technology (MU.O), claiming that the company has infringed on eight of its patents. The lawsuit, filed on November 9 at the U.S. District Court for the Northern District of California, alleges that Micron has been using YMTC’s patented technology to gain and protect market share without paying the fair licensing fees.
YMTC’s statement to Reuters on Monday confirmed that the lawsuit had been filed, expressing confidence that the matter would be swiftly resolved. However, Micron did not respond to requests for comments outside of regular U.S. business hours.
Both Micron and YMTC are key players in the production of DRAM chips and NAND flash memory chips, competing with other major electronics manufacturers such as Samsung and SK Hynix from South Korea, and Japan’s Kioxia. YMTC is a smaller player in the industry, but the company faced restrictions from the U.S. last year, preventing them from purchasing certain American components.
The U.S. has imposed increasingly stringent regulations on exporting chip-making technology to China in recent years, citing concerns over national security. In May, China expressed its own stance by failing network security reviews for Micron products and prohibiting their purchase by operators of key infrastructure.
This isn’t the first time Micron has been involved in disputes of this nature. In 2018, the company was embroiled in a legal battle with Chinese state-backed chipmaker Fujian Jinhua, with accusations of trade secret theft and temporary sales bans in China. Additionally, Micron’s market share in China has diminished, dropping from 50% of its revenue in 2017 to just 16% in 2022.
Despite these challenges, Micron has expressed its commitment to the Chinese market, announcing plans to invest billions of yuan in its chip-packaging plant in Xian city and recently participating in a trade expo in Shanghai for the first time.
The lawsuit between YMTC and Micron brings to the forefront the growing tensions in the semiconductor industry, especially as it relates to international trade and intellectual property rights. As the legal battle unfolds, it will be closely watched by industry analysts and market observers.
(Reporting by Anirudh Saligrama, Yelin Mo and Brenda Goh; Editing by Christopher Cushing and Lincoln Feast.)