China’s cybersecurity regulator, the Cyberspace Administration of China (CAC), has issued a ban on Chinese companies from buying chips from US memory manufacturer Micron Technology. The CAC stated that Micron’s products pose “significant security risks” to critical Chinese information infrastructure, including state-owned banks and telecom operators. The ban follows China’s announcement in March to review Micron imports, which was perceived as retaliation for US sanctions imposed on Chinese chipmakers in recent years.
Micron Technology, headquartered in Idaho, is the largest memory manufacturer in the United States. While the Chinese market accounts for about 10 percent of Micron’s annual revenue, the majority of companies importing Micron products into China are manufacturers producing devices for sale in other regions. The ban, as reported by The Wall Street Journal, does not apply to non-Chinese firms operating in China. Micron has responded to the ban, stating, “We are evaluating the conclusion and assessing our next steps. We look forward to continuing to engage in discussions with Chinese authorities.” However, the CAC has not provided specifics on which Micron products would be affected by the ban or detailed the security concerns it has with the company’s chips.
This ban represents the latest development in the escalating dispute between the US and China over semiconductor technology. In recent months, the Biden administration has taken steps to restrict China’s access to advanced chipmaking equipment. In January, officials from the US, the Netherlands, and Japan agreed to tighten export controls on lithography machines from ASL, Nikon, and Tokyo Electron. The Wall Street Journal highlights China’s attempts to retaliate against the US, with Micron becoming an easy target. Chinese companies can seek alternatives such as South Korea’s SK Hynix to compensate for any supply shortage resulting from the ban.
The ban on Micron products underscores the heightened tensions and growing restrictions surrounding semiconductor technology, which is critical for various industries globally. The ongoing feud between the US and China in this realm could have significant implications for the supply chain and technological development in the semiconductor sector.
