China has initiated a cybersecurity investigation into Micron Technology, a major player in America’s memory chip industry, as a response to new restrictions imposed on the sale of key technology to Beijing by US allies in Asia and Europe. The Cyberspace Administration of China (CAC) will be scrutinizing Micron’s products sold in the country to ensure the security of key information infrastructure supply chains and prevent cybersecurity risks. This investigation is taking place amidst Japan announcing restrictions on the export of advanced chip manufacturing equipment to China, following similar actions by the United States and the Netherlands.
The restrictions on China’s semiconductor industry imposed by Washington and its allies are impacting Beijing’s ambition to become a tech powerhouse. The recent curbs signal a significant challenge to China’s technological advancements. Micron has confirmed its awareness of the review, stating that it is cooperating fully, reaffirming the security of its products, and emphasizing that its operations are running as usual. However, the news resulted in Micron’s shares falling by 4.4% on Wall Street and a further 1.2% drop the following Monday.
Micron, deriving more than a tenth of its revenue from China, had previously warned of potential risks associated with Chinese market participation. Reacting to the scrutiny, China has expressed strong opposition to the tech export restrictions imposed by other countries, emphasizing its commitment to attracting foreign investments to spur growth and job creation. Chinese officials have been engaging with global CEOs to create an appealing business environment.
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