Core Viewpoint - Yangtze Memory Technologies Co. (YMTC) has filed a lawsuit against Micron Technology and a public relations firm, DCI, accusing them of conspiring to spread false information about YMTC's flash memory chips posing a data security threat [1][3]. Group 1: Allegations and Legal Actions - YMTC claims that since September 2020, DCI has disseminated false information on its "China Tech Threat" website, alleging that YMTC's chips could be used to monitor millions of American consumers, compromising data privacy and national security [3]. - The lawsuit argues that YMTC's chips lack essential components for remote control or wireless communication, such as antennas and modems, and asserts that Micron and DCI should have known these claims were false [3]. - YMTC alleges that Micron and DCI orchestrated a "pseudo-grassroots" misinformation campaign to damage YMTC's reputation and business interests, thereby protecting Micron's market share [3]. Group 2: Impact on Business - The false information has reportedly led to significant business losses for YMTC, including the loss of a deal with a leading original equipment manufacturer that planned to source 40% of its NAND flash chip needs from YMTC, resulting in hundreds of millions of dollars in losses [4]. - YMTC has experienced sales declines and market opportunity losses, which forced the company to implement a 10% workforce reduction in early 2023 to manage additional costs incurred from reputation recovery efforts [4]. Group 3: Ongoing Legal Disputes - In addition to the current lawsuit, YMTC previously filed a defamation lawsuit in California against a Danish consulting firm funded by Micron, alleging that it published false reports damaging to YMTC's market reputation [5]. - YMTC and Micron are also involved in a prolonged patent dispute, with YMTC accusing Micron of infringing on multiple patents related to 3D NAND Flash technology [5]. - Recent court rulings have required Micron to provide sensitive technical documents to YMTC, while Micron has sought to overturn these rulings citing national security concerns [5]. Group 4: Market Position - According to TrendForce, as of Q4 2024, Micron holds a 13.8% share of the global NAND Flash memory market, ranking fourth behind Samsung, SK Hynix, and Kioxia, which collectively control about 84% of the market [6]. - YMTC, established in 2016, has yet to significantly disrupt the existing market dynamics in the flash memory sector [6].