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Micron Says China Operations Normal Despite Government Review

The Cyberspace Administration of China said it would conduct a security review of Micron’s products sold in the country


Micron is the first U.S. chipmaker to be targeted by Beijing after a series of export controls by Washington on certain American components and chip making tools to block them being used to advance China's military capabilities.
Micron is the only US-based player in the global market for memory chips. It is the first US chipmaker to be targeted by Beijing after export controls were imposed last October. Photo: Reuters

 

Micron Technology on Monday said that its business operations in China are normal while it is cooperating with a Chinese government cyber-security review of its products.

“Micron’s product shipments, engineering, manufacturing, sales and other functions are operating as normal,” the company said in a statement.

Last week, the Cyberspace Administration of China said it would conduct a security review of Micron’s products sold in the country. Micron derives around 10% of its revenue from China.

 

Also on AF: Japan Joins US Chip War Against China With Export Restrictions

 

The move comes amid a deepening rift between the United States and China over chip technology that has left companies caught in the crossfire.

Micron is the only US-based player in the global market for memory chips and is building a new $15 billion factory in upstate New York.

Chinese companies have also been working to break into the memory market, but the US last year restricted export of chipmaking tools to the country.

The Biden Administration has imposed a series of export controls on chipmaking technology to China for fear it could be used to produce chips for applications such as artificial intelligence which could be used by China’s military.

The US has also blacklisted a number of China’s largest chip firms, including Micron rival YMTC, China’s leading maker of storage chips.

 

  • Reuters, with additional editing by Vishakha Saxena

 

Also read:

 

China Objects to Japan’s New Chip Export Restrictions

 

Huawei Beats US Sanctions With Chip Tool Breakthrough

 

Nvidia Tweaks Another Flagship AI Chip for Export to China

 

China to Ease Subsidy Access for Chipmakers Amid US Chip War

 

US Sanctions on China to Hit Dominance of Chips: TSMC Founder

 

Vishakha Saxena

Vishakha Saxena is the Multimedia and Social Media Editor at Asia Financial. She has worked as a digital journalist since 2013, and is an experienced writer and multimedia producer. As a trader and investor, she is keenly interested in new economy, emerging markets and the intersections of finance and society. You can write to her at [email protected]