ibusinesslines.com
ibusinesslines.com November 21, 2018


UMC recieves favourable ruling in Chinese patent dispute

07 July 2018, 03:59 | Kelvin Horton

UMC recieves favourable ruling in Chinese patent dispute

UMC recieves favourable ruling in Chinese patent dispute

The logo of USA memory chip maker MicronTechnology is pictured at their booth at an industrial fair in Frankfurt, Germany, July 14, 2015.

The Chinese ban on Micron targeted its products sold through retail outlets and represented only a small portion of the chipmaker's revenue. The company employs more than 20,000 people worldwide, with offices in Taiwan, China, Europe, Japan, Korea, Singapore, and the United States.

The memory chip market has been increasingly concentrated in the hands of Micron and its two Korean rivals, Samsung Electronics and Hynix.

Micron's head of legal affairs, Joel Poppen, said the company was "disappointed" with the injunction, saying Micron hadn't had a chance to present its defense in court.

Since the fourth fiscal quarter is underway, Micron anticipates that the negative impact to revenue this quarter relating to the injunction will be roughly 1%, and the company continues to expect revenue to be within the previously guided range of $8.0 billion to $8.4 billion.

Shares in the sector had been shaken on Tuesday by the first reports of the ruling, which added to a growing list of intellectual property disputes between Washington and China in the technology sector.


The ZTE crisis has intensified China's desire to slash its dependence on foreign-made computer chips.

Micron has been one of the firms caught in the middle. Micron, naturally, disagrees with UMC's claims, and in an interesting twist has issued a statement of its own claiming to have not yet been served with any such injunction.

UMC denies the allegations, and has filed to have the California case dismissed. The case is still being heard.

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

On the demand front, Chinese domestic market is expected to consume around 26% of the DRAM bit output of Micron, and 20% of global DRAM bit output in 2018 as China remains the world's second-largest economy.

However, sources close to the company say it is now drafting a response to the ruling by the Fuzhou Intermediate People's Court of the People's Republic of China. UMC's comprehensive foundry solutions enable chip designers to leverage the company's sophisticated technology and manufacturing, which include world-class 28nm High-K/Metal Gate technology, 14nm FinFET volume production, specialty process platforms specifically developed for AI, 5G and IoT applications and the automotive industry's highest-rated AEC-Q100 Grade-0 manufacturing capabilities for the production of ICs found in vehicles.



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