Taiwanese chipmaker United Microelectronics Corp. said a Chinese court barred the sale of products made by rival Micron Technology Inc., sending the U.S. chipmaker's shares lower.
United Microelectronics Corp., or UMC, said in a statement that the Fuzhou Intermediate People's Court ruled in favor of UMC and issued a preliminary injunction against Micron, prohibiting the chipmaker from selling 26 of its DRAM and NAND-related products, including hard drives and memory sticks, in China.
Micron said it has not been served with preliminary injunction and will not comment further until it receives and reviews documentation from the Chinese court, according to the Financial Times.
The ruling stemmed from patent infringement lawsuits filed by UMC against Micron earlier this year. "With today's ruling, Micron's products now face injunction for violating UMC's patent rights in a court verdict that applies to all of mainland China," UMC said.
U.S. stocks generally closed lower in holiday-shortened trading July 3, with Micron shares ending off 5.51% at $51.48. The Nasdaq Composite Index fell by 0.86% to 7,502.67 and the S&P 500 stock index closed down 0.49% at 2,713.22.