The cybersecurity regulator of China has banned companies from buying Micron products after finding significant security risks to critical information infrastructure, such as state-owned banks and telecom operators.
US President Joe Biden (4R), with US Senate Majority Leader Chuck Schumer (3R), and New York Governor Kathy Hochul (2R), listens to CEO of Micron Technology Sanjay Mehrotra (C) during a tour of the Micron Pavilion at the SRC Arena and Events Center of Onondaga Community College in Syracuse, New York on October 27, 2022.
Banning Micron
The Cyberspace Administration of China announced on Sunday that products from Micron Technology Inc had failed its network security review. Engadget reported that Chinese operators are banned from purchasing their products as they pose serious problems that could endanger China's critical information supply chain, affecting the country's national security.
The ban would not apply to non-Chinese companies based in the country as the CAC still evaluates the conclusion and assesses their next steps. "We look forward to continuing to engage in discussions with Chinese authorities," the Cybersecurity regulator stated. No confirmation from the agency on what products would be affected and what security concerns it had.
Micron Technology is the largest memory manufacturer in the United States, and the Chinese market accounts for about 10% of the company's annual revenue. Thus, the decision to ban Micron from selling its products to key companies could affect the country's supply chains.
Cybersecurity Review
This is the latest action from China in an economic feud between Beijing and Washington that both rearrange the fabric of the global microchip industry. Regulators from China announced last April that it would conduct a cybersecurity review for Micron, becoming the first foreign chip maker to be put under review in the country.
"The Chinese government may restrict us from participating in the China market or may prevent us from competing effectively with Chinese companies," Micron stated. Among the top customers of Micron in China were Lenovo, Xiaomi, Inspur Electronics Information, ZTE, Coolpad, China Electronics Corp, and Oppo.
In one of its efforts, South China Morning Post reported that Micron appointed Betty Wu Mingxia as the new general manager to embody the company's commitment to the local technology ecosystem, business operations, and various stakeholders in China. Micron built its first factory in the country in 2007, and as of April, it had 3,000 employees in Shanghai, Beijing, and Shenzhen.
Also read: Micron is Building the Largest Semiconductor Facility in the US Worth $100 Billion
Reuters reported that the review came after the United States imposed several restrictions on chipmaking technology in China, aiming to prevent Yangtze Memory Technologies from purchasing certain American components. US authorities cited the potential risk of core tech getting into the hands of the Chinese military.
Since then, China has been extending its efforts to shore up its homegrown chip industry as it spent billions of dollars to be self-reliant and replace Western chips and parts with homegrown alternates.
Related Article: Micron Becomes First Foreign Chip Maker to Put Under Cybersecurity Review by China
