Backed by strong support from the Chinese government and the inconsistent actions of the US, Chinese semiconductor equipment manufacturer Advanced Micro-Fabrication Equipment (AMEC) has seized the opportunity to take a bold step, directly suing the US Department of Defense (DoD) for its inclusion in a blacklist.
Analyses believe that AMEC's daring move suggests it has solid evidence and confidence, as otherwise, such a strategy would be extremely risky. AMEC's confidence in this lawsuit, apart from being supported by a strong patent portfolio, is likely fueled by possibly catching the US in a contradictory position and years of hard-fought legal battles.
According to AMEC's official statement, it filed a lawsuit against the US DoD in an American court, challenging its inclusion in the "Chinese Military Company" (CMC) list. AMEC argued that this inclusion is erroneous, not based on facts, lacks legal basis, and violates due process.
AMEC also raised two more concerns in its self-reporting process. Firstly, AMEC claims it made every effort to communicate with the US DoD, clarify the facts, and provide sufficient evidence to prove that it does not meet the criteria set for the CMC list, but these efforts were unsuccessful.
Secondly, in January 2021, the US DoD had listed AMEC on the "Communist Chinese Military Companies List." However, following an appeal, AMEC was successfully removed from this list. The US's reversal of its previous decision may become a focal point of AMEC's approach to the lawsuit, essentially using the US actions against it.
Abundant experience in legal battles
Within China's tech sector, AMEC is currently regarded as one of the most battle-hardened in patent litigation, making it a learning model for many Chinese companies.
In just the third year of its operation, in 2007, AMEC caught the attention of Applied Materials. The scrutiny was primarily due to AMEC's executives, including its founder and chairman Gerald Yin, who previously worked at US semiconductor companies like Intel, Applied Materials, and Lam Research before returning to China to establish AMEC. This raised concerns over a conflict of interest. Thus, Applied Materials filed a lawsuit against AMEC, marking the company's first major international legal battle.
Since then, AMEC has faced continuous patent litigation. In 2010, it filed a lawsuit against Lam Research in Shanghai, which went through two trials over six years. In 2017, equipment manufacturer Veeco initiated a patent infringement lawsuit against AMEC's supplier, SGL, in the US. AMEC then counter-sued Veeco for patent infringement in the Fujian High Court and won a patent injunction in Shanghai by the end of the year. After several rounds of back-and-forth, both parties ultimately reached a settlement.
Over the years, these lawsuits have provided AMEC with valuable international legal experience and served as stepping stones, with each legal victory or settlement bolstering its position. AMEC's ability to face US sanctions and assert its technological strength has been crucial in building its confidence.
