"The case sits at the intersection focal points. The first is geopolitical. YMTC is a Chinese semiconductor manufacturer founded in 2016 by the partially state-owned Tsinghua Unigroup with approximately $24 billion in initial state-backed investment. The company was placed on the Bureau of Industry and Security's Entity List in December 2022 as an organization " reasonably believed to be involved, or to pose a significant risk of being or becoming involved, in activities contrary to the national security or foreign policy interests of the United States." 15 C.F.R. § 744.11."
"The Department of Defense separately designated YMTC as a "Chinese Military Company Operating in the United States" in January 2024. Against this backdrop, YMTC filed IPR petitions challenging two Micron NAND flash memory patents. After Micron sought Director Review, Dir. Squires issued a Show Cause order on November 10, 2025, requiring YMTC to justify why adjudicating its petitions was an appropriate use of the Office's limited resources given its Entity List designation. See Dennis Crouch, Shutting the Patent Office Door: YMTC and the Entity List, Patently-O (Nov. 16, 2025)."
USPTO Director John Squires vacated PTAB institution decisions and denied Yangtze Memory Technologies Co.'s IPR petitions challenging two Micron NAND flash memory patents. YMTC received substantial state-backed investment, is partially state-owned, and was placed on the Bureau of Industry and Security Entity List and designated by the Department of Defense as a Chinese Military Company Operating in the United States. The Director issued a Show Cause order requiring YMTC to justify why adjudicating its petitions was an appropriate use of the Office's limited resources given the Entity List designation. The decision is designated informative and signals increased scrutiny of foreign state-linked petitioners and tighter IPR petition requirements.
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