Chinese Chip Maker YMTC Suing Micron

Facts

  • It was revealed this week that Chinese chip maker Yangtze Memory Technologies Co. (YMTC) filed suit Nov. 9 against Micron Technology, accusing the US company of infringing on eight of its patents.1
  • A lawsuit filed in the US District Court for the Northern District of California alleges that Micron Technology hasn't paid its fair share to use patented technology owned by YMTC.1
  • YMTC named four products in the suit: 96-, 128-, 176-, and 232-layer NAND flash memory chips.2
  • A YMTC spokesperson said the company is “steadfast” in its commitment to protecting its intellectual property. The spokesperson added that the company is “confident” this issue will be resolved quickly.2
  • Previously, the US government sanctioned YMTC by placing it on an export blacklist, which restricted its opportunity to acquire American technology and intellectual property.3
  • In turn, Chinese regulators have been investigating Micron and banned its products from being used in critical infrastructure.4

Sources: 1Reuters, 2South China Morning Post, 3Barron's and 4Silicon UK.

Narratives

  • Anti-China narrative, as provided by Firstpost. YMTC, a partially state-owned company that’s much smaller than Micron, has a lot of gall suing for patent infringement, considering the blatant violations of patents carried out by Chinese companies over the years. Of course, any time a US company has sued over these issues in China, the court has sided with the Chinese companies. China should learn that respect for patents starts at home.
  • Pro-China narrative, as provided by DigiTimes. YMTC’s size doesn’t matter in this case. The company is taking a bold stand for itself and the entire Chinese semiconductor industry against US bullying and patent infringement. The fact that it’s willing to go out on a limb like this and has requested a decision from a fair and impartial jury shows it’s confident it has a solid case.

Predictions