US Restrict Exports to Chinese Chip Maker Over Technology Theft

The Commerce Department is restricting US exports to a Chinese DRAM producer over claims the company stole the manufacturing engineering from the US.

On Mon, the Commerce Department accused the supplier, Fujian Jinhua Integrated Circuit Co., of sourcing its chip engineering from the U.s. and positioning itself to push out American suppliers of US military systems.

"When a strange company engages in activity contrary to our national security interests, we will take strong action to protect our national security," Secretary of Commerce Wilbur Ross said in a statement.

Jinhua Integrated Circuit GroundBreaking

The move comes afterwards Us-based Micron Engineering accused the Chinese company of conspiring to obtain its trade secrets.

In a 2022 lawsuit, Micron said Jinhua partnered with Taiwan'due south United Microelectronics Corporation to steal US trade secrets every bit a mode to accelerate the Chinese company'due south DRAM chip product. The two parties pulled off the corporate espionage past poaching employees from Micron's Taiwan affiliate, who then allegedly handed over Micron trade secrets to Jinhua.

Jinhua was only founded in 2022, but information technology's been expanding fast. The company has invested $five.65 billion to build a factory in Red china devoted to producing memory chips. Co-ordinate to Micron'south lawsuit, Jinhua'due south goal is to begin mass product of DRAM fries this yr.

Nevertheless, the Commerce Department's export ban could end up limiting the Chinese company'south evolution. The company has now been put on what is known equally an Entity List, which will crave Jinhua to apply for a license in order to receive Usa exports of commodities, software, and technology. The motion is probable futile as "such license applications volition exist reviewed with a presumption of deprival," Commerce says.

The export ban, meanwhile, comes as the US is engaged in a trade war with China. The Trump assistants has accused the land of using unfair trade practices to compel US companies to hand over intellectual holding to their Chinese counterparts. The Pentagon has also warned that the United states supply chain is becoming too dependant on Chinese manufacturing.

Jinhua Integrated Excursion did not immediately answer to a request for comment. But in People's republic of china, the company sued Micron Technology itself, with claims that the The states company has violated its patents. In July, a Chinese court sided with Jinhua and temporarily barred Micron from selling certain bit products in the state.