"To be clear, YMTC is not an ordinary China-based company. YMTC reached the Entity List after first being placed on the Unverified List in October 2022 when BIS was unable to complete end-use checks to verify that exported technology was being used as declared. Under President Biden, YMTC was added to the Entity List based on findings that the company creates a major risk of diversion (sharing key technology) with other parties on the entities list, including Huawei and Hangzhou Hikvision."
"In January 2024, the Department of Defense also designated YMTC as a " Chinese Military Company Operating in the United States." The company was founded in 2016 by partially state-owned Tsinghua Unigroup with approximately $24 billion in initial investment including substantial funding from the Hubei provincial government and the state-owned China Integrated Circuit Industry Investment Fund, and later received billions more in government capital infusions."
USPTO Director John Squires is framing the patent system as a tool of national and international technology policy and signaled an anti-China approach in October 2025. A Show Cause order requires Yangtze Memory Technologies Company (YMTC) to justify why its IPR petitions against Micron should proceed despite YMTC's placement on the Department of Commerce Entity List. YMTC was first placed on the Unverified List in October 2022 after failed end-use checks and was later added to the Entity List over diversion risks involving Huawei and Hangzhou Hikvision. The Department of Defense designated YMTC a Chinese Military Company Operating in the United States in January 2024. YMTC was founded in 2016 with roughly $24 billion in initial investment and significant state funding, and it has received additional government capital infusions.
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