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HomeTraditional FinanceStock MarketChina Reviews Micron's Products for Cybersecurity Risks Amid US-China Chip Feud

China Reviews Micron’s Products for Cybersecurity Risks Amid US-China Chip Feud

China’s Cyberspace Administration (CAC) has announced a cybersecurity review of Micron Technology Inc.’s products sold in the country. This move is amid the ongoing feud over chip technology between the US and China. The CAC aims to protect the critical information infrastructure’s security supply chain, prevent hidden risks, and safeguard national security. However, it has not yet provided further details, including which Micron products it is reviewing.

Micron Technology Inc. is one of the world’s largest memory chip manufacturers. In response to the announcement, Micron said it was aware of the situation and was “in communication with the CAC and are cooperating fully.” The company emphasized its commitment to customers and assured the public that it stands by the security of its products.

The US has imposed export controls on chipmaking technology to China due to fear that it could be used for military purposes, such as producing chips for artificial intelligence. The US also blacklisted China’s largest chip firms, including Micron’s rival, Yangtze Memory Technologies Co Ltd. Experts suggest that this could lead to punitive actions against Micron, which may indicate a broader shift in China’s policy toward other US vendors.

Microchip

Japan has also announced that it will align its technology trade controls with the US’s effort to curb China’s ability to make advanced chips. Similarly, the Netherlands, which is critical in manufacturing advanced chips, made a similar announcement earlier this month.

Micron derives around 10% of its revenue from China. However, it is unclear whether the review will affect the company’s sales to non-Chinese customers in the country. Analysts suggest that most of the company’s products flowing into China are being purchased by non-Chinese firms for use in products manufactured in the country. Micron has offices in Shanghai and Shenzhen, as well as a chip packaging facility in the city of Xian. However, in early 2022, the company announced it would shut its DRAM design operations in Shanghai.

Conclusion

Micron Technology Inc. is currently facing a cybersecurity review of its products by China’s Cyberspace Administration. While the company has emphasized its commitment to its customers, experts suggest that this could lead to punitive actions against Micron, which may indicate a broader shift in China’s policy toward other US vendors.

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