China Bans US Chip Producer Micron Technology Inc from Selling Memory Chip Products

Jakarta –

Hot relations between the United States (US) and China continued. China has banned US chip producer Micron Technology Inc from selling memory chip products to the country’s main Bamboo Curtain industry.

Micron said a ban on sales to Chinese companies could erode its revenues. The reason is that his party is working on many major infrastructure projects there.

“We are currently estimating multiple impacts as single-digit percentages of our total corporate revenue at the bottom and corporate revenue at the top,” said Micron’s chief financial officer, Mark Murphy, quoted from CNN, Tuesday (23/5/2023).

The Cyberspace Administration of China (CAC) said the company failed to pass a cybersecurity review. The news comes shortly after the closing of the G7 summit in Hiroshima, Japan, where the country’s leaders spoke with one voice on their growing concern for China.

“The review found that Micron’s products pose relatively serious cybersecurity risks, which pose a significant security risk to China’s critical infrastructure supply chain and will affect national security,” the Chinese regulator said.

As a result, Chinese operators involved in domestic critical infrastructure projects have had to stop buying products from Micron.

As a result, Micron Technology (MU) shares fell by around 3% on Monday (22/5). Its rivals, Ingenic Semiconductor jumped 2.8%, Shenzhen Techwinsemi Technology jumped 6.3%, Toyou Feiji Electronics jumped 14%. In Seoul, SK Hynix, one of the world’s largest memory chip makers, rose 0.9% to outperform the South Korean market.

The Chinese regulator’s decision comes 7 weeks after starting a cybersecurity review of Micron’s products. This was in apparent retaliation to the sanctions imposed by the US on the Chinese chip sector.

The US Department of Commerce firmly opposes Micron’s restrictions on China as having no basis.

“It is inconsistent with (China’s) assertion that it is opening up its market and is committed to a transparent regulatory framework,” a spokesperson for the department said in a statement.

(aid/hns)