China has initiated a cybersecurity investigation into Micron Technology, an American memory chip giant, in response to new technology restrictions implemented by US allies in Asia and Europe. The Cyberspace Administration of China (CAC) will be examining Micron’s products sold in the country to ensure the security of key information infrastructure supply chains, prevent cybersecurity risks, and maintain national security. This move comes after Japan announced export restrictions on advanced chip manufacturing equipment to countries including China, aligning with similar actions taken by the United States and the Netherlands.
In light of these developments, Micron stated that it is aware of the review and is fully cooperating with the CAC. The company stands by the security of its products, emphasizing that its operations, including product shipments, engineering, manufacturing, and sales, are functioning as usual. However, Micron’s shares on Wall Street experienced a significant decline of 4.4% on Friday and closed 1.2% lower on Monday. Micron generates over 10% of its revenue from China, making it vulnerable to market disruptions.
Micron had previously cautioned about the risks associated with Chinese government restrictions in a filing, highlighting the potential impact on its ability to compete in the Chinese market. In response, China has expressed strong opposition to tech export restrictions, aiming to attract foreign investments to stimulate economic growth. Beijing has been welcoming global CEOs and assuring a favorable business environment, while also exerting pressure on foreign companies to align with its policies.
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