China has banned sales of Micron products in the country as a result of an investigation launched into the U.S. memory chip provider in early April over potential risks cybersecurity
The decision appears to be related to the broader economic competition between the US and China. Last year, the US added Chinese memory chip maker Yangtze Memory Technologies Corporationto its entity list, prohibiting US companies from supplying it without approval. The US has also blocked Nvidia from exporting its latest GPU, the H100, to China.
See also: LinkedIn: Lays off employees – Closes InCareer in China
China's Cyberspace Administration has told domestic companies that provide " core information infrastructure " to stop purchasing from Micron. According to the investigation, Micron's products " have serious cybersecurity and pose a great risk to the country's core information supply chains issues ."
Micron is an American manufacturer of computer memory and data storage, including dynamic random-access memory, flash memory, and USB flash drives. It is one of the most advanced and innovative companies in the data storage space. Micron opened its first factory in China 16 years ago. China is its third largest market, accounting for 10.7% of its annual revenue in 2022.
It is worth noting that the “core information infrastructure”, as China defines it, includes finance, telecommunications, energy, transportation, defense and any other sector that concerns national interests.
China did not provide further details on how Micron poses a cybersecurity risk, but experts cited China's 2016 cybersecurity law, which aims to strengthen government oversight of the internet.
See also: China unveils rules for genetic artificial intelligence (AI)
Micron had predicted the challenges it would face in China in its 2022 annual report:
“We face the threat of increased competition as a result of significant investments in the semiconductor industry by the Chinese government and various state-owned or affiliated entities, such as Yangtze Memory Technologies Co., Ltd. (“YMTC”) and ChangXin Memory Technologies, Inc. (“CXMT”)… In addition, the Chinese government may limit our participation in the China market or may prevent us from competing effectively with Chinese companies“.
The Micron ban could benefit the US chip company's competitors in China, such as Samsung Electronics and SK Hynix.
In response to the ban, the U.S. Department of Commerce said it would work directly with Chinese authorities to clarify the U.S.. It would also work with key allies and partners to address the challenges.
“We strongly oppose restrictions that have no basis in fact,” a US Commerce Department spokesperson said.
See also: Tesla Megapack: New battery factory in China
“This action, along with recent raids and targeting of other American companies, is inconsistent with [China's] claims that it is opening its markets and committing to a transparent regulatory framework“.
The ban on Micron in China is not surprising, given the ongoing trade war between the US and China. In addition, in recent years, China has been working to strengthen its technological self-sufficiency so that it does not depend on foreign suppliers. There has been an effort to replace foreign hardware and software with domestic alternatives.
Source: techcrunch.com
