The case is part of a broader dispute between the two companies centering on accusations that UMC acted as a conduit for the theft of Micron chip designs in an attempt to help China grow its domestic chip industry and replace imports that rival oil in total value.

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A Chinese court temporarily banned Micron Technology chip sales, cutting the Boise-based company off from the world’s largest semiconductor market, Taiwanese rival United Microelectronics Corp. said.

In a patent ruling in favor of UMC, the Fuzhou Intermediate People’s Court of the People’s Republic of China issued a preliminary injunction stopping Micron from selling 26 products, including dynamic random access memory and NAND flash memory-related products, UMC said in a statement Tuesday.

Micron said it hasn’t been served with the injunction and won’t comment until it does The company’s stock dropped $3, or 5.5 percent, to $51.48 Tuesday.

The case is part of a broader dispute between the two companies centering on accusations that UMC acted as a conduit for the theft of Micron chip designs in an attempt to help China grow its domestic chip industry and replace imports that rival oil in total value.

A Chinese antitrust regulator is already investigating Micron and its South Korean rivals, the companies have said. Local media have reported that authorities are looking into increases in chip prices.

Last year, Micron sued UMC and its partner Fujian Jinhua Integrated Circuit, claiming they stole memory-chip trade secrets. China accounted for more than 50 percent of Micron’s revenue in fiscal 2017, according to company data.

China is the largest market for semiconductors, yet isn’t home to even one of the top 10 producers of the crucial electronic components. The memory-chip market has been increasingly concentrated in the hands of Micron and its two South Korean rivals, Samsung Electronics and SK Hynix. They have generated record profits recently from the components that are essential to everything from supercomputers to smartphones.

The Micron ban escalates a trade dispute between China and the U.S. that’s engulfing industries from steel to autos and increasingly also the electronics sector, where the two countries’ economies are heavily intertwined. President Donald Trump has railed against Chinese companies for allegedly stealing U.S. companies’ intellectual property

China’s Huawei Technologies and ZTE are fighting U.S. government action that threatens to cut them off from U.S. suppliers and potential customers. On Monday, the U.S. moved to block China Mobile, the world’s largest mobile phone service provider, from entering the U.S. market, citing national security grounds. Meanwhile, Qualcomm is still waiting for permission from Chinese regulators to complete its acquisition of NXP Semiconductors. That delayed deal was scheduled to be closed at the end of last year and has been approved everywhere else in the world.

While their governments fight, companies face potential disruption of a complex supply chain that produces most of the world’s smartphones, computers and their components. For example, Qualcomm designs its chips at its San Diego headquarters, then has them manufactured in Taiwan, South Korea and China. The semiconductors then become the most important electronic parts in phones that are mostly made in China and then sold worldwide.

ZTE resumes some U.S. business

The Trump administration is letting ZTE resume some business activities while the U.S. weighs ending a seven-year ban on the Chinese telecommunications company, according to a document obtained by Bloomberg News.

The ZTE authorization by the Commerce Department’s Bureau of Industry and Security is valid from July 2 until Aug. 1. While it wasn’t immediately clear when a permanent order will follow, a person familiar with the matter said ZTE is expected to be in compliance with U.S. demands by Aug. 1.

ZTE’s stock surged its 10 percent daily limit in Shenzhen on Tuesday, the biggest jump in more than a year.

The authorization permits China’s No. 2 maker of telecom gear to support existing networks or equipment under contracts signed on or before April 15, when the U.S. blocked companies from selling components to ZTE for violating sanctions against Iran and North Korea. The ban had forced ZTE to announce it was shutting down.

President Donald Trump reversed course in May, saying he was reconsidering penalties on ZTE as a personal favor to Chinese President Xi Jinping. Later that month, the Trump administration announced it would allow the company to stay in business after paying a $1.3 billion fine, changing its management and providing “high-level security guarantees.”

A bipartisan group of lawmakers remains concerned about ZTE’s threat to U.S. national security and is pushing for legislation aimed at restoring harsher penalties.

— Jenny Leonard, Bloomberg News