Micron sees just 1 percent hit on revenue from China ban

Memory chip parts of U.S. memory chip maker Micron Technology are

Memory chip parts of U.S. memory chip maker Micron Technology are

As China accounted for about 50 percent of Micron's revenue in 2017, the ruling sent Micron shares plunging by 5.5 percent on Wall Street overnight. Moreover, Micron has submitted compelling evidence to the Patent Review Board of China's State Intellectual Property Office demonstrating that the patents are invalid because they are directed to technologies that were previously developed and patented in other countries by other technology companies. The court in China ordered Micron chips to be halted from being imported or sold in the largest economy in Asia, said sources at the court.

The verdict bars Micron from selling 26 NAND and DRAM related products, including certain memory sticks and solid-state hard drives (SSD) in China.

The stock is responding favorably, up $1.79, or 3.5%, at $53.27, in early trading.

On Monday, the USA moved to block China Mobile, the world's largest mobile phone service provider, from entering the United States market, citing national security grounds.

Micron has been in a legal battle with Taiwan-based, United Microelectronics since December, when Micron sued United, alleging theft of secrets, following which UMC sued Micron for patent infringement.

UMC filed patent infringement lawsuits against Micron with the mainland China courts in January, 2018, covering three areas, including specific memory applications related to DDR4, SSD and memory used in graphics cards.

A spokesman for Micron, which is based in Idaho, said Wednesday that the company hasn't yet received the court order and won't comment until it does. If the judgment is enforced in the future, Micron will be prohibited from selling some of its memory products in China.

"UMC is pleased with today's decision", Jason Wang, the company's co-president, said in a statement. "Micron believes the ruling issued by the Fuzhou Court in Fujian Province is inconsistent with this proclaimed policy".

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

The Micron ban could be a major opportunity for other global chipmakers to step in. Because China cannot replace Micron's supply of chips with its own domestically produced chips, this could ultimately lead to a reversal of the court's ban, according to an unnamed official in South Korea's semiconductor industry, in an interview with South Korean news portal Business Korea.

U.S. chipmaker Micron has run into trouble in a court battle in China, according to one of its rivals.

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