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A Chinese court has temporarily banned chip sales from Micron Technology Inc., cutting the US company from the world's largest semiconductor market, said its Taiwanese competitor, United Microelectronics Corp. The People's Court of China has issued a preliminary injunction preventing Micron from selling 26 products, including dynamic random access memory (RAM) and products related to Nand flash memory, UMC said in a statement on Tuesday. Micron said that he has not been served with the injunction and will not comment until he does it. Shares of the Boise-based company, in Idaho, fell 8%
The case is part of a broader dispute between the two companies centered on accusations that UMC would have served as a channel for the theft of Micron's designs. help China develop its domestic flea industry and replace imports that rival oil in total value. A Chinese antitrust regulator is already investigating Micron and its Korean rivals, the companies said. Local media reported that the authorities are studying price increases for chips.
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Last year, Micron sued UMC and its partner Fujian Jinhua Integrated Circuit Manufacturing Co. secrets of memory chips. China accounted for more than 50% of Micron 's business figure in 2017, according to the company' s data.
China is the largest semiconductor manufacturer, but it is not even one of the top 10 producers of crucial electronic components. The memory chips market is increasingly concentrated in the hands of Micron and its two Korean rivals, Samsung Electronics Co. and SK Hynix Inc. They have recently generated record profits thanks to indispensable components for everything from supercomputers to smartphones .
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Micron's ban worsens a trade dispute between China and the United States that engulfs the industries of steel to automobiles and more and more countries' economies are strongly linked. US President Donald Trump criticized Chinese companies for stealing intellectual property from US companies
Huawei Technologies Co. and ZTE Corp. in China are fighting US government measures that threaten to cut them off from potential suppliers and customers in the United States. On Monday, the United States decided to prevent China Mobile Ltd., the world's largest mobile phone service provider, from entering the US market, citing national security reasons. Meanwhile, Qualcomm Inc. is still waiting for permission from Chinese regulators to complete its acquisition of NXP Semiconductors NV. This delayed contract was to be closed at the end of last year and has been approved everywhere else in the world.
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While their governments are fighting, companies face the potential disruption of a supply chain complex that produces most smartphones, computers and their components in the world. For example, Qualcomm designs its chips at its San Diego headquarters and then manufactures them in Taiwan, Korea, and China. Semiconductors become the most important electronic parts in phones that are mainly made in China and then sold around the world.
Updates with Micron's answer to the second paragraph
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