Micron shares tumble after rival says a Chinese court banned chip sales

Key Points
  • Micron's Taiwanese rival says the American chipmaker has been issued a temporary sales ban in China.
  • Micron says it hasn't been served with a preliminary injunction and will not comment until it has received and reviewed any court documents.
  • It's the latest in the ongoing trade secrets dispute between United Microelectronic Corporation and Micron.
Micron CEO Sanjay Mehrotra
Scott Mlyn | CNBC

Micron shares fell as much as 8 percent during regular trading on Tuesday after Taiwanese rival United Microelectronic Corporation (UMC) released a statement claiming a Chinese court had temporarily banned sales of Micron chips in China.

Micron closed down 5.5 percent on the day.

Micron said it has not been served with an injunction and would not comment further until it has received and reviewed court documentation.

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UMC's statement said the Fuzhou Intermediate People's Court of the People's Republic of China had issued a preliminary injunction, preventing Micron from selling 26 products, including certain solid-state hard drives and memory sticks, in China.

"UMC is pleased with today's decision. UMC invests heavily in its intellectual property and aggressively pursues any company that infringes UMC's patents," UMC president Jason Wang said in a statement.

The Taiwanese chipmaker sought the sales ban, alleging that Micron violated its patent rights in China. UMC and Micron have gone back and forth in the courts, alleging various intellectual property violations. Micron has accused UMC of assisting in the theft of Micron’s designs to help China pursue its own semiconductor ambitions.

WATCH: Micron's response to report out of Chinese court

Micron: Haven't been served with ruling blocking chips in China