Chinese chipmaker YMTC challenges US Defense Dept in suit

China’s leading flash memory chipmaker, Yangtze Memory Technologies Co, has filed a lawsuit against the US Department of Defense, challenging its inclusion on a US list of companies alleged to have links with China’s military.

The lawsuit, submitted on Friday to a federal court in Washington, seeks to overturn the designation and block its enforcement. YMTC was placed on the Pentagon’s list of so-called Chinese military companies in January 2024.

In its filing, YMTC said that it has no connection to military. The company is a key developer of advanced flash memory technology used in consumer devices such as smartphones and laptops.

In a parallel legal move on the same day, YMTC also sued the US Commerce Department over its 2022 addition to an export restriction list, which limits its access to American technology. YMTC said that it maintains a rigorous export compliance program and noted that the US Commerce Department has never accused it of violating US export controls.

YMTC did not immediately respond to requests for comment.