China has initiated a cybersecurity investigation into Micron Technology, a major American memory chip manufacturer. This move seems to be a response to new restrictions imposed by US allies in Asia and Europe on the sale of crucial technology to Beijing.
The Cyberspace Administration of China (CAC) has announced it will be assessing the products sold by Micron within the country. This action is intended to ensure the security of key information infrastructure supply chains, prevent cybersecurity risks, and safeguard national security.
This development coincided with Japan’s decision, a US ally, to limit the export of advanced chip manufacturing equipment to certain countries, including China. These decisions, along with similar moves by the United States and the Netherlands, are proving to be significant hurdles for China’s semiconductor industry, impacting its aspirations of becoming a tech powerhouse.
Micron has acknowledged the review and is fully cooperating with the CAC while affirming the security of its products. The company assured that its operations, including product shipments, engineering, manufacturing, and sales, are functioning normally. However, Micron’s shares experienced a notable decline on Wall Street in response to this news, emphasizing the company’s significant revenue presence in China.
An Idaho-based company, Micron had previously highlighted the potential risks associated with such regulatory actions, stating concerns over being restricted from the Chinese market or facing challenges in competing with local companies. China, on its part, has publicly criticized these recent restrictions on tech exports, stating its firm opposition to such measures.
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