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USA chipmaker Micron Technology Inc said on Thursday a temporary Chinese ban on a patent infringement lawsuit against the company would hurt its quarterly revenue by 1 percent.

The logo of US memory chip maker MicronTechnology is pictured at their booth at an industrial fair in Frankfurt, Germany, July 14, 2015. (MU) from selling a range of products in China, escalating a battle the companies are waging over allegations of trade-secrets theft and patent infringement. Micron still has the right to appeal, and the follow-up of this case is bound to become the focus of the global memory industry amid the critical stage for the US-China trade war.

While this ruling may have little impact on Micron's activities in China, the company is still facing an investigation by a Chinese antitrust regulator along with its Korean rivals, the companies have said. The United States is set to impose tariffs on $34 billion (£25.75 billion) worth of goods from China on July 6, which Beijing is expected to respond to with tariffs of its own.

News of the ruling were first reported by United Microelectronics Corporation, a technology firm based in Taiwan, which had filed a patent infringement lawsuit against Micron.

China is trying to build its own semiconductor industry as part of its "Made in China 2025" strategy and as it seeks to lower its reliance on foreign companies, many of them US -based.

Micron has been one of the firms caught in the middle.

The lawsuit followed Micron's complaint in December against Chinese government-backed Fujian and UMC in a California court alleging misappropriation of its trade secrets and other misconduct. The case is still being heard.

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This prompted UMC to countersue on January 12, filing a patent infringement lawsuit against Micron at the Fuzhou Intermediate People's Court.

Micron and UMC have been at loggerheads over the issue of stealing trade secrets in the Chinese court since a year ago.

"In today's environment, because of the tensions between China and the United States", he added, local judges may feel more comfortable granting an injunction knowing they would "face less pressure from the higher courts".

US analysts who have been recommending Micron's stock as it racks up record profits amid one of the strongest periods of demand in the memory chip industry's 50-year history, expressed relief at Micron's analysis.

Fujian Jinhua also issued a statement on Tuesday saying the court had ruled against Micron.

In the semiconductor industry, experts say that China pursuing the rapid growth of the Chinese semiconductor industry sided with the Chinese company. If the ban is enacted, Micron's competitors, including Samsung, SK Hynix, WDC, Intel, Toshiba and the new entrant YMTC would be benefited.


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