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July 3, 2018

Nasdaq Tumbles Amid Chinese Court Bans Micron Chip Sales

Potentially in response to Trump's actions on China Mobile, a Chinese court temporarily banned Micron Technology chip sales, cutting the U.S. company off from the world’s largest semiconductor market.  
Yesterday we specifically warned that following yet another targeted attack at a prominent Chinese company, it is only a matter of time before China responds in kind, and considering the size and prominence of China Mobile, one wonders how long until China takes aim at none other than the world's largest company, Apple.  
Well it's not yet Apple but it's getting there and Micron shares are tumbling on the headlines to 2-month lows...  

Bloomberg reports that in a patent ruling in favor of Taiwanese rival United Microelectronics (UMC), the Fuzhou Intermediate People’s Court of the People’s Republic of China issued a preliminary injunction stopping Micron from selling 26 products, including dynamic random access memory and Nand flash memory-related products, UMC said in a statement Tuesday. Micron said it’s preparing a response.  
The case is part of a broader dispute between the two companies centering on accusations that UMC acted as a conduit for the theft of the Micron’s designs in an attempt to help China grow its domestic chip industry and replace imports that rival oil in total value.
A Chinese antitrust regulator is already investigating Micron and its Korean rivals, the companies have said. Local media has reported that authorities are looking into increases in chip prices.

China accounted for more than 50 percent of Micron’s revenue in fiscal 2017, according company data, and that has sent Nasdaq reeling...

Courtesy of Tyler Durden, Founder of Zero Hedge  (More by ZH here)  

The views and opinions expressed herein are the author's own, and do not necessarily reflect those of EconMatters.

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Item Reviewed: Nasdaq Tumbles Amid Chinese Court Bans Micron Chip Sales Rating: 5 Reviewed By: EconMatters