Judge dismisses YMTC lawsuit against Micron over false claims

A US federal judge has tossed out a lawsuit brought by Chinese chipmaker Yangtze Memory Technologies Co. (YMTC) against Micron Technology, ruling that claims about YMTC’s memory chips containing “spyware” constituted political speech rather than the kind of commercial false advertising that courts can punish.

US District Judge Carl Nichols issued the dismissal on August 14, ending a legal fight that had been brewing since YMTC filed suit in June 2025. The core question was deceptively simple: when a competitor says your product is a national security threat, is that a business attack or a political opinion? Judge Nichols sided firmly with “political opinion.”

What YMTC alleged

YMTC’s complaint targeted both Micron and DCI Group, a public affairs firm. The Chinese chipmaker argued that the defendants violated the federal Lanham Act, which prohibits false advertising and unfair competition in commercial settings.

At the heart of the dispute were claims published through the China Tech Threat website during 2021 and 2022. Those statements linked YMTC’s technology to military espionage and criminal conduct, allegations the company vigorously denied.

YMTC argued the campaign did real financial damage, claiming losses in the millions of dollars from reputational harm and disrupted business relationships with electronics manufacturers in the US and abroad.

Micron pushed back, arguing the lawsuit was an attempt to stifle legitimate political advocacy. The company denied any wrongdoing and framed the case as a free speech issue rather than a commercial dispute.

Why the Lanham Act angle failed

The Lanham Act is the go-to federal statute for companies that believe a competitor is lying about them in the marketplace. But it has a critical limitation: it only covers commercial speech. Political commentary, policy advocacy, and public debate about national security fall outside its reach.

Judge Nichols determined that the statements about YMTC’s chips were better understood as part of a broader political conversation about Chinese technology companies and US national security. The court did not rule on the truth or falsity of the claims themselves, only on the category of speech they represented.

A longer history of conflict

This lawsuit did not emerge from a vacuum. YMTC and Micron have been locked in patent disputes since November 2023, when YMTC accused the American chipmaker of infringing on its 3D NAND flash memory patents. Those proceedings have continued with ongoing motions stretching into 2025 and 2026.

YMTC was added to the US Entity List in late 2022, which imposed restrictions on technology access and reshaped the competitive landscape for memory chipmakers on both sides of the Pacific.

What this means for the semiconductor industry

The ruling effectively establishes that framing a competitor’s products as national security risks, at least when done through advocacy channels rather than product-comparison advertising, falls under the umbrella of protected political speech.

For Micron, the dismissal removes a legal cloud and reinforces its ability to engage in policy debates about semiconductor supply chain security. The company still faces the ongoing patent infringement claims from YMTC over 3D NAND flash memory, so the broader legal contest between the two chipmakers is far from over.

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