"UMC is pleased with today's decision".
The court drama started in December when Micron filed a lawsuit in California under the Defend Trade Secrets Act.
On Monday, the United States moved to block China Mobile, the world's largest mobile phone service provider, from entering the U.S. market, citing national security grounds.
In response, UMC filed patent infringement lawsuits against Micron with the mainland China courts in January of 2018, covering three areas, including specific memory applications related to DDR4, SSD and memory used in graphics cards.
European shares are broadly higher Wednesday, but they are losing some ground as trade tensions continue to simmer.
According to UMC, the ruling on Tuesday by the Chinese court showed it has initially judged Micron to have stolen technology from the Taiwanese company.
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Micron said in a statement it hadn't been served with the injunction yet and "will not be commenting further until the company has received and reviewed documentation from the Fuzhou Intermediate People's Court of China".
A Micron spokesman replied to news reports on the preliminary injunction via email. On its part, Micron accused UMC of stealing its designs and trade secrets with a motive of helping the Chinese government develop its local memory chip industry.
The U.S. case brought by Micron sprang out of a criminal indictment in August of 2017 in Taiwan brought against UMC as well as one of its partners Fujian Jinhua Integrated.
The judgment issued on July 3rd not only banned the sales of some Micron-branded and Crucial-branded products in China, but also ordered Micron's IC assembly/testing plant in Xi'an to halt operation; Micron Technology (Shanghai) Co., Ltd. has also been ordered to cease sales. "Micron believes the ruling issued by the Fuzhou Court in Fujian Province is inconsistent with this proclaimed policy".
Meanwhile, Micron's ban could put pressure on Chinese companies and thus hike up the price on some domestic-made chips, said Wang Yanhui, secretary general of China Mobile Alliance, in an interview with Chinese business newspaper 21st-Century Business Herald. The order applied to 26 products, including Micron's DRAM and NAND flash products. The global chip market is mainly in the hands of Micron and its two Korean rivals, Samsung Electronics and SK Hynix.
And if Chinese chipmakers advance to the technological capabilities of South Korean chipmakers in the future, "there could be a stronger pressure or sanction on Korean companies", akin to the Micron ban, the insider said.