United States chipmaker Micron denies receiving Chinese injunction on chip sales

U.S. Stock Market

U.S. Stock Market

The injunction also comes amid escalating trade tensions between the United States and China over tariffs.

Micron engages in the manufacture and provision of semiconductor systems internationally. Korean chip makers are keenly checking the situation, fearing that the sanctions of China will be extended to Korea later than enjoy reflective benefits. "(Jinhua) dated July 3", the spokesman said.

According to Wang, Micron now supplies SSD modules to Alibaba, China's largest e-retailer; Huawei, the world's third-largest smartphone maker; Tencent Holdings, a Chinese conglomerate providing internet and telecommunications services; and Baidu, China's largest search engine.

The case is also part of a broader dispute between the two companies after the U.S. chipmaker accused UMC previous year of stealing Micron's designs in an attempt to help China advance its domestic chip industry.

UMC filed the lawsuit at the beginning of year, accusing Micron of violating its patents rights in mainland China.

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China placed a temporary ban on chip sales from Micron's Chinese subsidiaries, blocking the $59 billion company from the largest semiconductor market in the world, after a Chinese court ruled in favor of United Microelectronics' and Fujian Jinhua Integrated Circuit's January complaint that Micron infringed on patents in China protecting memory storage and other products.

"The Fuzhou Court issued this preliminary ruling before allowing Micron an opportunity to present its defense", said Joel Poppen, Micron's general counsel. However, the Chinese court did not informed Micron of the decision to prohibit production and sale of by Micron, but the story was leaked from UMC, a competitor of Micron. After this lawsuit, some of its PC DRAM and SSD products are facing a ban on sales in China.

China is the largest market for semiconductors, yet isn't home to even one of the top 10 producers of the crucial electronic components. But it also said that restrictions will only hurt its business slightly. "The worst scenario is that Korean companies are included in the sanction list of China". Only China has not yet cleared it on antitrust grounds.

Customers can buy Micron products from original equipment manufacturers, retailers, distributors, or get them directly from the company. An official who answered a call to the court's news office confirmed the existence of an injunction order on Micron, but said details of the ban would not be made public because the case is still ongoing. Some experts say that the preliminary ruling on this day may be China's plan to secure cards for future negotiations.

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