Published: Sat, July 07, 2018
Economy | By Melissa Porter

Micron says not been served with preliminary injunction

Micron says not been served with preliminary injunction

Micron Technology Inc on Thursday played down the likely impact on its business of a temporary Chinese ban on some chip sales but said it would appeal a decision that has added to U.S.

UMC filed its complaint against Micron in January, saying the US firm had infringed on three of its patents covering its SSD, graphics memory card and DDR4 SDRAM products. 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. This led to the preliminary injunction, which would stop Micron from selling 26 products in China. It predicted this will not affect its outlook for the August-ending fiscal Q4 of $8 billion to $8.4 billion.

On Monday, the United States moved to block China Mobile, the world's largest mobile phone service provider, from entering the U.S. market, citing national security grounds. Micron will continue to aggressively defend against these unfounded patent infringement claims while continuing to work closely with its customers and partners.

Micron has also been looked at as a pawn in the escalating trade war pitting Washington against China.

The two chipmakers have been at loggerheads since December a year ago when Micron filed a civil lawsuit in the state of California, accusing UMC of secret infringement of intellectual property related to its DRAM chips.

Micron said in a statement it hadn't been served with the injunction yet and "will not be commenting further until the company has received and reviewed documentation from the Fuzhou Intermediate People's Court of China".

As evidence, Micron cited the use of Micron DRAM technology code names at a UMC and Jinhua recruitment fair for RAM chip experts in Silicon Valley in October 2016 and its discovery that its employees poached by UMC had copied confidential information before leaving the company.

Taiwan's United Microelectronics Corporations won its patent case brought against Micron Technology based in Idaho, in a court in China. Shares of Micron fell 5.5% after the news broke on Tuesday.

Micron makes big business from selling its products to China. Samsung, SK Hynix and Micron have been leading this market by supplying memory semiconductors to home appliance, smartphone and server companies.

Other chipmakers also gained. The Fuzhou Court issued this preliminary ruling before allowing Micron an opportunity to present its defense.

U.S. chipmaker Micron has run into trouble in a court battle in China, according to one of its rivals. Qualcomm Inc rose 3.2 percent, Broadcom Inc 2 percent and Intel Corp up 2.6 percent.

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