UMC recieves favourable ruling in Chinese patent dispute
UMC recieves favourable ruling in Chinese patent dispute
Micron Stock Drops On China Court Ruling To Ban Its Memory Chips
07 July, 2018, 02:30
UMC invests heavily in its intellectual property and aggressively pursues any company that infringes UMC's patents.' UMC filed patent infringement lawsuits against Micron with the mainland China courts in January, 2018, covering three areas, including specific memory applications related to DDR4, SSD and memory used in graphics cards.
The court in China ordered Micron chips to be halted from being imported or sold in the largest economy in Asia, said sources at the court.
Micron official Joel Poppen was quoted in a release thus: "Micron is disappointed with the ruling by the Fuzhou Intermediate People's Court". In December, Micron filed a civil suit in California under the Defend Trade Secrets Act against UMC, saying the Chinese firm teamed up with the Fujian Jinhua Integrated Circuit Co.to hire its staff members, who stole secret blueprints pertaining to its DRAM and flash memory products.
The ruling by the Fuzhou Court comes amid trade tensions between Washington and China over wide ranging issues including intellectual property.
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. Micro said it had not received confirmation of the move. Several Chinese government-backed entities have poured billions in research and to buy companies with a trove of chip patents. "Near-term this could favor non-US chipmakers vs". The company - which only two years ago was losing money, eliminating jobs and weighing an acquisition offer from China's Tsinghua Unigroup - almost doubled its year-over-year profit last quarter, to $3.82 billion.
The US memory chip maker, along with South Korean rivals, SK Hynix, Inc. and Samsung Electronics Co. dominate the Chinese chip market. A company spokesman declined to comment further.
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The ban comes amid an escalating trade spat between Washington and Beijing that is spurring China to accelerate its goal of developing its own domestic chipmakers to curb the heavy reliance on US firms like Micron and Qualcomm Inc (QCOM.O).
Shares of Micron, which generated half of its $20.3 billion fiscal 2017 revenue from China, closed down 5.5 percent on Tuesday at $51.48.
However, today Micron reiterated its quarterly sales guidance, emphasizing that the injunction would only impact its overall sales by 1%.
Other chipmakers also gained.
In Taipei, shares of Nanya Technology Corp., a close business partner of Micron, had fallen 0.61 percent to NT$81.30 as of 11:42 a.m., Wednesday.
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