Chinese chip manufacturer Montage Technology recently announced that relevant South Korean regulatory agencies have conducted on-site searches and evidence collection at its local offices, and the investigation involves potential competition law violations.
Montage Technology said in an exchange filing on Thursday that it is fully cooperating with the investigation by the Fair Trade Investigation Department of the Seoul Central District Prosecutor’s Office. To date, no director or employee of the company has been accused of illegal conduct by government authorities.
According to the data disclosed in the announcement, the Korean market has made a huge contribution to Montage Technology’s performance. In fiscal year 2025, the company's sales in South Korea reached 2.93 billion yuan (approximately US$432.63 million), accounting for more than half of its group's total revenue. Montage Technology was founded in 2004. According to its previous prospectus citing data from consulting and research firm Frost & Sullivan, the company is the world's largest supplier of memory interface chips, with a market share of 36.8% in 2024 based on revenue.
Earlier this year, Montage Technology completed a share sale worth HK$7.04 billion (approximately US$897.99 million), with the funds mainly used to support research and development. On the first day of listing in Hong Kong, the company's share price soared 64%. Affected by the news of the search, Montage Technology's Hong Kong stock price fell 23% at the close of trading on Thursday, closing at HK$278.6; its Shanghai-listed stock also fell 16.4%.
Montage Technology subsequently issued an announcement:
On July 15, the Fair Trade Investigation Department of the Central District Prosecutor's Office in Seoul, South Korea, conducted on-site searches and evidence collection at the company's Korean office for potential violations of antitrust-related regulations. The company is fully cooperating with the prosecutor's office's investigation requirements. As of the disclosure date of this announcement, the company, its directors and employees have not been accused of any wrongdoing by the prosecutor's office or any government agency. The company is currently operating normally and will still fully focus on product research and development and customer service.