Chinese Chipmaker Denies Poaching American Tech
Lai Shasha|Li Na
/SOURCE : Yicai
Chinese Chipmaker Denies Poaching American Tech

(Yicai Global) Nov. 5 -- State-backed Chinese chipmaker Jinhua Integrated Circuit has denied pilfering intellectual property from American counterpart Micron Technology after being indicted by the United States Department of Justice for economic espionage.

The Fujian-based firm conducts its own research and development and is continually increasing its investment there, it said in a statement on Nov. 3, adding that the company holds several patents and attaches great importance to intellectual property rights.

The DOJ indicted Jinhua, its Taiwanese partner United Microelectronics and three former employees of Micron's Taiwan unit on Nov. 1 for conspiring to steal Micron's trade secrets.

That decision came just three days after the US Department of Commerce announced it would add Jinghua to a list of companies which face stricter rules on exports because it was about to begin mass producing dynamic random access memory, which "likely" originated in the US and would be a threat to American military suppliers. That came into effect on Oct. 30.

Jinghua's inclusion on the list means American companies wishing to supply the firm will need to obtain a license for all commodities, software and technology subject to the US Export Administration Regulations. Applications made for such a permit will be "reviewed with a presumption of denial," the DOC said.

Micron regards Jinhua's development as a threat and is attempting to interfere with the Chinese firm's growth, the accused said in its statement. Jinhua will resolutely guard its lawful rights and interests and urges Micron to promote normal trade and cooperation, it added.

China's Ministry of Commerce also weighed in, saying the Asian nation disagrees with what it sees as an American generalization of national security and abuse of export restrictions. China also objects to the unilateral sanctions and interference with trade between it and the US, the ministry added.

United Microelectronics said after the indictment it would stop working with Jinhua, despite the pair having worked together on DRAM for the past 30 months. The pair agreed in May 2016 to develop related processing technologies with research funded by Jinhua and the pair taking joint ownership of their developments.

Editor: James Boynton


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Keywords: DRAM , R&D