Chinese businesses have been accused of violating foreign patents and dishonoring them without following the proper legal procedures by the Chinese government or law enforcement. Now, China’s largest chipmaker YMTC is criminating Micron of patent violation, and suing them.
Overview of YMTC’s legal grounds in the lawsuit:
In a move that can only be characterized as “pot calling the kettle black,” Chinese chip maker Yangtze Memory Technologies Co., often known as YMTC, has filed a lawsuit against US competitor Micron Technology, alleging that eight of its patents have been violated.
The US District Court for the Northern District of California is currently reviewing the November 9 action, which is primarily directed against Micron and its division, Micron Consumer Products Group.
YMTC Accuses Micron of Unfair Tech Competition:
According to the legal documents, YMTC is criminating Micron of using YMTC’s personalized technology as a protective measure against competition from YMTC itself. The action claims that Micron failed to pay a fair share for the use of these patented inventions, criminating the US company of indecorous conduct in an trouble to gain and guard its request share.
China and internationally owned patents have a peculiar history. Chinese companies, especially tech and bus companies have frequently been indicted of blatantly copying designs and schematics of some of the most popular pieces of tech and buses . In fashion, China has frequently been indicted of knocking off design of estimable contrivers and dealing fake products at a bit of the cost. Indeed state-possessed businesses have copied design and schematics from companies like Apple, BMW, Microsoft, Intel and innumerous others.
Court Favoring Chinese Firms, No Infringement Found:
Unsurprisingly, the court sided with the Chinese corporations when they were sued by the Chinese trademark holders, stating that internationally recognized patents had no legal significance in China. Every now and then the courts would decide that there had been no infraction at all.
As of now, there has been no sanctioned response from YMTC, and Micron has abstain from opining outside of regular US business hours. Micron Technology, a major player in the semiconductor assiduity, specializes in the product of DRAM chips and NAND flash memory chips.
Overview of Micron’s competition from Japanese and South Korean rivals:
It faces competition from international rivals including Japan’s Kioxia, a Toshiba subsidiary, and South Korea’s Samsung Electronics and SK Hynix.
In discrepancy, YMTC, a fairly lower contender, faced restrictions last time assessed by the US that banned it from acquiring certain American factors. The environment of this legal disagreement occurs against the background of adding US restrictions on exporting chipmaking technology to China, citing public security enterprises. In May, China asserted that Micron products didn’t pass a network security review, leading to a ban on their purchase by drivers of crucial structure.
Micron has a history of trap in legal controversies in China, specially in 2018 when it was involved in a conflict with the state- backed chipmaker Fujian Jinhua. Charges of trade secret theft were brought against The Ultimate, however they were refuted.
Impact of China Ban on Micron’s Market Share:
Accordingly, Micron’s main products faced a temporary deals ban in China that time.
Despite China once being Micron’s largest request, contributing half of its $20 billion profit in financial 2017, the company has endured a significant reduction in request share in recent times. China accounted for just 16% of Micron’s profits in 2022, a significant decrease that was ascribed to the shutdown of the company’s DRAM facilities in Shanghai.
Micron’s Expansion in Chinese Semiconductors:
Declaring its commitment to the Chinese agenda, Micron has not abated. In June, the company blazoned a substantial investment of 4.3 billion yuan ($ 590 million) in the coming times for its chip- packaging factory in Xian megacity. also, Micron made its debut at a trade exhibit in Shanghai before this month, motioning its continued engagement in the Chinese semiconductor geography.