YMTC Initiates Legal Action Against Micron for Alleged Patent Infringement
Yangtze Memory Technologies Co (YMTC), a Chinese flash memory manufacturer, has taken legal steps against Micron Technology, accusing the U.S. chip giant of violating eight of its patents. This legal move was initiated on November 9th at the U.S. District Court for the Northern District of California. According to YMTC, Micron and its affiliate have been leveraging YMTC's patented innovations to bolster and safeguard their market presence without offering equitable compensation.
Micron, a notable contender in DRAM and NAND flash memory chip production, competes with industry stalwarts like Samsung, SK Hynix, and Kioxia. Nevertheless, this lawsuit surfaces amidst U.S. government restrictions on chipmaking technology exports to China, citing security apprehensions.
YMTC asserts that Micron's conduct has impeded fair competition and stymied its advancements, labeling them as "freeriding" tactics. The legal recourse is a rebuttal to escalating U.S. sanctions on exporting advanced semiconductor tools and services to China, affecting YMTC's capacity to procure specific American components.
Despite enduring challenges like U.S. blacklisting and Beijing cybersecurity reviews, YMTC has displayed resilience. The firm has pivoted by fortifying relationships with domestic suppliers such as Naura with the goal of substituting U.S. components in its manufacturing chain. This resolute stance is particularly significant, given the withdrawal of personnel from YMTC by entities like Lam Research and KLA Corp post its addition to the U.S. Entity List.
In the lawsuit, YMTC underscores its technological acumen, claiming to have developed the "world's most advanced" 3D NAND memory chip for consumer devices. Positioned as a pivotal player in the global 3D NAND arena, YMTC perceives the lawsuit as a shield for its intellectual property against Micron's purported hindrances to its progress.
In the realm of market dynamics, YMTC emerges as China's response to global NAND memory chip manufacturers. Last August, the company introduced its inaugural 232-layer 3D NAND chip, showcasing its dedication to innovation. U.S.-imposed trade constraints have spurred Chinese enterprises, including YMTC, to fortify links within the semiconductor supply chain and reduce dependence on American technologies.
Financially bolstered, YMTC received a substantial $7 billion infusion in March from state-affiliated investors, including the "Big Fund." This financial injection aimed at empowering YMTC to sustain NAND memory chip production sans relying on American suppliers, accentuating strategic backing from the Chinese government.
Market share predictions illustrate a projected decline in YMTC's global share in the NAND sector to 5.7% this year from 6% in 2022. Similarly, Micron's share is anticipated to dip to 10.9% from 11.3%. These forecasts mirror the hurdles both firms confront amid geopolitical strains and shifting market dynamics.
Micron has refrained from commenting on the ongoing legal dispute. Nevertheless, the legal clash between YMTC and Micron adds another layer to the perpetual saga within the semiconductor industry, characterized by global rivalry, technological progressions, and geopolitical complexities.
