Top Chinese memory chip maker YMTC sues Micron for patent infringement, bringing semiconductor battle to the US

China’s leading flash memory maker Yangtze Memory Technologies Co (YMTC) has filed a lawsuit against US memory chip maker Micron Technology for patent infringement, accusing the American tech giant of “freeriding” to protect its market share.

The civil lawsuit against the largest US memory chip maker was filed on Thursday at the US District Court for Northern California. It alleges that Micron and its subsidiary Micron Consumer Products Group together infringed on eight of YMTC’s patents.

The products named in the suit include YMTC’s 96-, 128-, 176- and 232-layer NAND flash memory chips. YMTC did not immediately respond to a request for comment on the case filing.

China’s YMTC makes world’s most advanced memory chip: TechInsights report

The latest legal saga comes as YMTC has sought to overcome escalating US sanctions on the export of advanced semiconductor tools and services to China. Washington blacklisted the Chinese chip giant last December. In April, Beijing launched a cybersecurity review into Micron in a move widely seen as retaliation for Washington’s intensifying pressure.
The US measures have so far not derailed YMTC’s progress. The firm has forged closer ties with domestic suppliers such as Naura to replace US parts in its manufacturing equipment, the Post previously reported.

Reflecting confidence in its market position, YMTC referred to itself in the case filing as “no longer an upstart”, but a “key player in the global 3D NAND market”. It painted Micron as “threatened by YMTC’s ascension”, turning to patent infringement to “hinder competition” and force its rival out of the market.

YMTC’s 64-layer 3D NAND Flash memory wafer. Photo: ymtc.com
YMTC is China’s answer to top global NAND memory chip makers such as South Korea’s Samsung Electronics and SK Hynix, Japan’s Kioxia, as well as Micron, the last company producing memory chips in the US. The 7-year-old Chinese firm unveiled in August last year its first 232-layer 3D NAND chip, the state-of-the-art X3-9070.

However, the company’s international rise was disrupted in October 2022 when the US updated its trade rules, which not only further restricted China-bound chip-making equipment, but also prevented US persons from providing maintenance on such equipment in the country.

After being added to Washington’s so-called Entity List, YMTC delayed the construction of a second wafer fab in Wuhan and slashed equipment orders. The company regained its footing in March when it received a US$7 billion capital injection from state-backed investors, including the so-called Big Fund, to keep producing NAND memory chips without support from American suppliers.

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China imposes restrictions on US chip maker Micron, escalating tech war

China imposes restrictions on US chip maker Micron, escalating tech war

In a veiled swipe at those suppliers, Chen Nanxiang, chairman of YMTC and the newly elected chairman of the China Semiconductor Industry Association, said in June that suppliers unable to ensure delivery or normal operation of their equipment should “buy back” those tools from customers.

US trade restrictions limiting China’s access to advanced chip-making machinery have prompted Chinese businesses in the semiconductor supply chain to forge closer ties with each other and reduce reliance on American technologies.

YMTC’s global market share in the NAND sector is projected to fall to 5.7 per cent this year from 6 per cent in 2022. Micron’s share is forecast to drop to 10.9 per cent from 11.3 per cent, according to data from Ni Guangnan, a Chinese semiconductor expert, during a forum in August.

Samsung retains a commanding market lead with 37 per cent this year.

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