Chinese flash memory maker YMTC sues US over military designation

Mike Scarcella

Mon, December 8, 2025 astatine 9:17 AM CST 2 min read

By Mike Scarcella

WASHINGTON, Dec 8 (Reuters) - China's apical flash representation chipmaker Yangtze Memory Technologies Co (YMTC) has sued the U.S. Defense Department, challenging ​a determination to see the exertion institution connected a database of ‌entities allegedly moving with Beijing’s military.

The lawsuit, filed connected Friday successful the national tribunal successful Washington, ‌asked a justice to artifact enforcement of the listing and person the designation thrown out. The Pentagon added YMTC to its database of Chinese subject companies operating successful the U.S. successful January 2024 and reaffirmed the designation earlier this ⁠year.

YMTC develops precocious flash representation ‌technology utilized successful user electronics including laptops and mobile phones. In the suit against the Pentagon, YMTC said it has ‍no ties to the People’s Liberation Army oregon China’s defence sector.

YMTC besides sued the U.S. Commerce Department connected Friday to situation its inclusion successful 2022 connected a abstracted ​agency database that restricts entree to American technology. YMTC contends it has ‌a robust export compliance programme and said Commerce has ne'er alleged it violated U.S. export power laws.

The Defense Department connected Monday declined to comment. The Commerce Department and YMTC did not instantly respond to requests for comment.

The suit against the Defense Department said it relied connected outdated and inaccurate accusation to ⁠conclude YMTC was affiliated with China’s Ministry ​of Industry and Information Technology. It said the ​designation has caused “significant and ongoing fiscal and reputational harm,” including mislaid concern with U.S. partners.

YMTC said its products are commercial-grade and bash ‍not conscionable specifications ⁠for subject use. The institution said it has ne'er supplied its exertion oregon products for subject purposes.

Two different companies facing akin U.S. designations, drone ⁠maker DJI and lidar shaper Hesai Group (ZN80y.F), person appealed aft courts dismissed their lawsuits challenging ‌their inclusion. Both companies person denied ties to China's military.

(Reporting by ‌Mike Scarcella; Editing by Andrea Ricci )