In a recent legal development, Chinese chipmaker Yangtze Memory Technologies Co. (YMTC) has taken a legal stance against U.S. competitor Micron Technology, filing a lawsuit alleging the infringement of eight of its patents. The lawsuit, initiated on November 9, was lodged at the U.S. District Court for the Northern District of California.
According to the filed complaint, YMTC accuses Micron, along with its unit, Micron Consumer Products Group, of resorting to YMTC’s patented technology as a means to counter competition from YMTC and to secure and defend its market share. The claim contends that Micron has not been meeting its fair share in compensating for the use of the patented inventions.
In response to the legal action, YMTC issued a statement to Reuters on Monday, stating, “While we cannot discuss the specifics of pending litigation, I can confirm that YMTC recently filed a lawsuit in the U.S. District Court for the Northern District of California against Micron Technology, Inc. for infringement of our company’s patents related to the design, manufacture, and operation of 3D NAND technology. We are confident that this matter will be resolved swiftly.”
On the other hand, Micron declined to comment on the ongoing legal proceedings.
Micron, a major player in the semiconductor industry, specializes in the production of DRAM chips and NAND flash memory chips. It competes with prominent names such as Samsung Electronics, SK Hynix, and Kioxia (a unit of Toshiba). In contrast, YMTC is a comparatively smaller rival that faced restrictions last year from the U.S., preventing it from purchasing certain American components.
The backdrop of this legal tussle is set against the backdrop of heightened restrictions imposed by the U.S. on exporting chipmaking technology to China, citing security concerns. Notably, in May, China declared that Micron products failed a network security review, leading to a prohibition on their purchase by operators of key infrastructure.
Micron, once enjoying a significant presence in the Chinese market, witnessed a notable decline, with China contributing only 16% to its $20 billion revenue in 2022, down from 50% in fiscal 2017. Despite these challenges, Micron remains committed to the Chinese market, as evidenced by its recent announcement of a 4.3 billion yuan ($590 million) investment in its chip-packaging plant in Xian city. Additionally, Micron participated in a trade expo in Shanghai this month, signaling its ongoing commitment to engagement in the Chinese market.