is facing a lawsuit from China’s Yangtze Memory Technologies over alleged patent infringement. It’s another sign that the memory chip maker is on the front lines of U.S.-Chinas tension over access to semiconductor technology.
(ticker: MU) was the subject of a lawsuit filed by Yangtze Memory, or YMTC, in the U.S. District Court for the Northern District of California.
YMTC is a partially state-owned company and one of China’s most advanced memory-chip manufacturers. It has been placed on an export blacklist by the U.S. government, restricting its ability to acquire American technology and intellectual property.
Micron said it doesn’t comment on pending litigation. Shares were down 1.9% in Monday morning trading but are up 48% for the year.
Micron is a relatively easy target for retaliation in exchange for U.S. restrictions on advanced semiconductor exports to China due to the availability of non-U.S. memory-chip suppliers such as SK Hynix and Samsung Electronics.
Micron has already been the target of Chinese sanctions. Earlier this year, China’s Cyberspace Administration told companies involved in the country’s critical information systems to stop buying chips from Micron, saying they pose a “major security risk,” without elaborating.
The YMTC lawsuit looks like another result of U.S.-China tensions over technology. Chinese state-run newspaper Global Times quoted analysts as saying the case was a counterattack against U.S. chip companies and should act as a wake-up call to related American enterprises.
YMTC is alleging infringement of eight of its patents, acording to Reuters. Micron generated 25% of its $30.8 billion in revenue from mainland China and Hong Kong in 2022.
Write to Adam Clark at [email protected]