Softening chip market hit harder by trade wars

Seasonal softness and a looming tariff dispute between China and the U.S. put a dampener on the chip market, and it only looks to be getting worse with China interfering in the business of a U.S. company.

Last week, Micron Technology, the number four chip vendor, according to IHS Markit, said China is blocking sales of some of its memory products. While based in Boise, Idaho, and having a large fabrication plant there, Micron also makes a lot of products in China for the Chinese market. And Micron is currently in a legal battle with Taiwanese chip maker United Microelectronics over alleged patent violations in China.

Last week, a Chinese court granted a preliminary injunction banning Micron subsidiaries in China from manufacturing or selling DRAM modules and NAND flash chips used in solid-state drives. The good news, according to Micron, is that the injunction covers only 1 percent of its revenue.

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Source: Network World