U.S. Chip Giant Micron Gets Banned In China

Due to worries that the US memory chip manufacturer may represent a threat to national security, China has blocked the sale of Micron Technology’s items.

The Announcement

Micron items are seen as a national security risk by the Chinese government, and their sale to China’s leading information infrastructure operators has been outlawed. The decision was taken only seven weeks after Chinese officials started looking into Micron’s devices’ cybersecurity. The action is thought to be a reaction to the United States tighter controls on chip shipments to China.

The US Commerce Department criticized the Micron verdict.

In a statement, the US Commerce Department stated that it “firmly opposes restrictions that have no basis in fact” and criticized previous “raids and targeting of other American firms” as being at odds with Beijing’s apparent commitment to openness and transparency in its regulatory system. 

China’s Micron Review

The Cyber Security Review Office of the China Cyberspace Administration (CAC) started researching Micron products in March. They remained mum on the items that were assessed or the procedures that were followed.

 The cybersecurity study reportedly discovered that the US memory chip manufacturer did not adhere to the appropriate security requirements to market its goods to China’s critical information infrastructure operators (CIIOs).

As per The Times Of India  reports, these operators encompass a range of organizations critical to China’s national security and the welfare of its citizens, including telecom operators, banks, and water utilities.

According to a statement released by Micron Technology Inc. on Monday, the firm anticipates a low- to high-single-digit percentage decline in sales due to China’s ban on its infrastructure chips.

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