Chinese Chipmaker Jinhua Plans to Appeal Ban on Buying US-Made Parts
Lai Shasha
DATE:  Jan 28 2019
/ SOURCE:  yicai
Chinese Chipmaker Jinhua Plans to Appeal Ban on Buying US-Made Parts Chinese Chipmaker Jinhua Plans to Appeal Ban on Buying US-Made Parts

(Yicai Global) Jan. 28 -- State-backed semiconductor firm Jinhua Integrated Circuit will leave no stone unturned to try to cancel the US ban on buying American-made technologies. 

Jinhua has submitted a letter to the End-User Review Committee, chaired by the US Department of Commerce, to inform the latter that it will file a formal appeal to remove it from the list of entities that cannot buy components, software and technologies from US firms, the Fujian-based firm announced on its website on Jan. 25.

Late October, the US added Jinhua to a list of companies with 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. On Nov. 1, the US Department of Justice filed a lawsuit against Jinhua and its partner United Microelectronics in Taiwan while accusing them of stealing intellectual property from Idaho-based chip maker Micron Technology.

Jinhua hasn't stolen any technology from any other firm and will firmly protect its legal rights and interests, the company said in a statement on Nov. 3. The firm was building a USD6 billion factory last September to churn out 60,000 units of 12-inch wafers monthly, but those dreams were put on hold due to the troubles in the US.

The row between two chipmakers has found its echo chamber in the trade tussle between China and the US. Jinhua's response is in line with the Chinese court's injunction to stop Micron from selling 26 types of chips on China's mainland, Gu Wenjun, the chief analyst from Chinese semiconductor research institute ICwise said, adding China is the largest market for Micron which sells more than half of its products in the country.

Jinhua consistently abides by the US laws, and it hopes to clarify in the next few months that it won't harm the US national security, the firm said on Jan. 25 on its website. 

After the US ban came into effect, United Microelectronics said that the 30 months of partnership with Jinhua on DRAM is over. The two agreed in May 2016 to develop related processing technologies with research funded by Jinhua while taking joint ownership of their achievements. 

Editor: Emmi Laine

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Keywords:   United Microelectronics,Micron Technology,Fujian Jinhua Integrated Circuit