US chipmaker Micron’s products will be screened in China for cybersecurity risks

China’s cyberspace regulator will conduct a cybersecurity review of products sold in the country by U.S. memory chip maker Micron Technology, the regulator said on Friday.

The move, which comes amid a dispute over chip technology between Washington and Beijing, is aimed at protecting critical information infrastructure supply chain security, preventing hidden risks and safeguarding national security. , the Cyberspace Administration of China said in a brief statement.

He gave no further details, including the Micron products he was reviewing.

The United States has imposed a series of export controls on chipmaking technology to China for fear that it will be used to produce chips for applications such as artificial intelligence that could be used by the Chinese military, and blacklisted a number of China’s biggest chip companies, including Micron rival Yangtze Memory Technologies Co Ltd.

Micron, one of the world’s largest memory chip makers, did not immediately respond to a request for comment. Shares of the company fell 3% on Friday.

“Punitive actions against Micron could suggest a broader shift in China policy with other U.S. vendors heavily exposed to China now potentially exposed to similar actions,” said Matthew Bryson, analyst at Wedbush Securities.

On Friday, Japan announced it would align its trade controls on technology with U.S. pressure to limit China’s ability to make advanced chips. The Netherlands, which makes advanced lithography equipment essential for advanced chip manufacturing, made a similar announcement earlier this month.

Weak consumer demand has rattled the memory chip market, which is dominated by South Korea’s Samsung Electronics.

Micron derives about 10% of its revenue from China, but it was unclear whether the review would affect the company’s sales to non-Chinese customers in the country.

Analysts said most of the company’s products entering China are purchased by non-Chinese companies for use in domestically produced products.

Micron has offices in Shanghai and Shenzhen, as well as a chip packaging plant in the city of Xian. In early 2022, the company announced that it would close its DRAM design operations in Shanghai.

© Thomson Reuters 2023

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