According to a federal lawsuit, Micron Technology Inc. (NASDAQ:MU) is accused of infringing on 11 patents owned by Chinese chipmaker Yangtze Memory Tech. Co. Ltd. (YMTC).

YMTC claims the key Biden’s Chips Act beneficiary used its patented inventions without authorization after YMTC surpassed Micron in the flash memory market in 2023, Bloomberg Law reports.

Also Read: Taiwan’s President Expresses Gratitude To Micron CEO For Ongoing Investment

The complaint was filed on July 12 in the US District Court for the Northern District of California, just one day after a Texas judge upheld a $445 million jury verdict against Micron for infringing Netlist Inc.’s semiconductor patents.

Earlier in 2024, Micron CEO Sanjay Mehrotra met with China’s Minister of Commerce to discuss deepening Micron’s operations and new investments in China. Mehrotra outlined Micron’s business plans and committed to complying with Chinese regulations, indicating a strong focus on expanding in the Chinese market.

Recently, analysts flagged Micron’s optimistic outlook on pricing and the shift towards AI computing and enterprise storage products. The company aims to increase its share of high-bandwidth memory (HBM) to 20% to 25% by 2025, targeting a market exceeding $20 billion.

Investors can gain exposure to Micron through VanEck Semiconductor ETF (NASDAQ:SMH) and Vanguard Value ETF (NYSE:VTV).

Price Action: MU shares traded lower by 2.09% at $128.13 at the last check on Tuesday.

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What's Going On With Micron Technology Stock On Tuesday?