Home / Business / Micron says that China’s ban will not hurt profits, but the ruling is unfair

Micron says that China’s ban will not hurt profits, but the ruling is unfair



Micron Technology Inc. said that prohibiting the sale of some of its products in China is unfair and will not hurt its profits.

The preliminary injunction of the Fuzhou Intermediate People's Court of the People's Republic of China does not t The hedging technology that is critical to its memory chips and therefore will only affect approximately 1 percent of its annual revenues, the company based in Boise, Idaho, said in a statement.

"The central government of China has declared the rights of foreign companies are just and equally protected in China," Micron said in the statement. "Micron believes that the ruling issued by the Fuzhou court in Fujian province is incompatible with this proclaimed policy."

The largest US computer memory manufacturer confirmed that it received a court order telling it to stop selling certain products in China as part The Taiwanese chip maker retaliated against Micron's allegation that UMC stole the technology from the chips and gave it to his Chinese partner, said Micron.

Micron said that none of the patents referred to in the resolution were used in their DRAM or NAND memory products. A representative of UMC declined to comment beyond saying that the Taiwanese company was happy with the decision of the court.

U.S. analysts who have been recommending Micron shares while accumulating record profits in the middle of one of the strongest demand periods in the 50-year history of the memory chip industry, expressed relief in the analysis of Micron. Shares rose to 3.6 percent, recovering from a fall of more than 5 percent on Tuesday when UMC claimed victory in the trial.

Micron reiterated its forecast of fiscal revenue for the fourth quarter from $ 8 billion to $ 8.4 billion.

China's goal is not to block shipments of Micron chips, but the decision could be part of a strategy to boost a partnership with Chinese semiconductor manufacturers, which could accelerate the domestic development of the chip industry. country, according to Stifel Nicolaus. analyst Kevin Cassidy.

While this ruling may have little impact on Micron's activities in China, the company still faces an investigation by a Chinese antitrust regulator along with its Korean rivals, the companies have said. Local media reported that authorities are investigating increases in chip prices.

That fueled concern that Micron's legal issues have made him a pawn in the broader trade dispute between China and the US president. Donald Trump criticized Chinese companies for allegedly stealing intellectual property from US companies.

China is the largest semiconductor market, although it does not even house one of the top 10 producers of crucial electronic components. Beijing wants to change that and has reserved billions of dollars to strengthen local businesses.

The memory chip market has increasingly been concentrated in the hands of Micron and its two Korean rivals, Samsung Electronics Co. and SK Hynix Inc. They have recently generated record profits from the components that they are essential for everything from supercomputers to smartphones.

– With the assistance of Debby Wu

( Updates with the UMC response in the fifth paragraph. )

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