The Chinese government has told operators of important infrastructure in the country to stop buying products from the US chipmaker Micron.
Chinese authorities said Micron products failed its network security and said in a statement that it poses a “major security risk” to China’s critical information infrastructure supply chain and affects [its] national security”.
However, specific details about the identified risks or the particular Micron products affected were not disclosed by the CAC.
The announcement represents the latest development in the ongoing dispute between the two economic powerhouses regarding crucial technology that underpins global economies. The United States has already implemented a series of measures targeting China’s chip-making industry, while simultaneously investing billions of dollars to bolster its own semiconductor sector.
Micron confirmed that it had received the CAC’s notice after their review of Micron products sold in China. A company spokesperson stated that they are currently evaluating the conclusions and considering their next steps, expressing the company’s willingness to engage in discussions with Chinese authorities.
In response, the U.S. government expressed its intention to collaborate with allies to address what it sees as “distortions of the memory chip market caused by China’s actions.” A spokesperson from the U.S. Commerce Department firmly opposed restrictions lacking factual basis and criticized China’s recent actions as contradictory to its claims of market openness and commitment to transparent regulations.
Following the news, Micron’s share price experienced a decline of 5.3% during pre-market trading in the U.S. China is a crucial market for Micron, accounting for approximately 10% of its annual sales. In 2022, Micron reported a total revenue of $30.7 billion, with $3.3 billion stemming from mainland China. The company also operates manufacturing facilities in China, making the ban a significant blow to its operations.
In a separate development, Micron recently disclosed plans to invest approximately 500 billion yen ($3.6 billion; £2.9 billion) in technology development in Japan, indicating the company’s commitment to diversifying its operations and reducing reliance on any single market.