China bans Micron’s US chips over ‘security risks’
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China rejects US chipmaker Micron due to “serious cybersecurity risks” following a review of products sold in the country. By doing so, operators of key IT infrastructures would have to stop buying Micron products, the National Cybersecurity Regulatory Authority said in the evening.
In March, China made public the move on Micron, the largest US maker of memory chips, to protect its IT supply chain and national security. The rejection adds more tension to China-US relations.
This is China’s first decision to ban an American technology maker. The damage is important for the company: according to what the Financial Times writes for Micron, mainland China and Hong Kong are worth 25% of revenues.
The US government introduced a set of new rules last fall that require manufacturers to be licensed by the Department of Commerce to export semiconductor and chip-making equipment to Chinese companies.
Holland and Japan have also decided to tighten up. Some analysts quoted by the English financial newspaper say that in the growth of commercial tension between the United States and China, what is now called the “war of the chips”, Micron was quite likely to be the first target as its technology can easily be replaced by that of South Korean competitors such as Samsung and SK Hynix.
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