China probes products from US chip maker Micron for cybersecurity risks

31 March (Reuters) – China’s cyberspace regulator said on Friday it will conduct a cybersecurity review of products sold in the country by U.S. memory chip maker Micron Technology (MU.O).

In a brief statement, China’s Cyberspace Administration said in a brief statement that the move, which takes place amidst a dispute over chip technology between Washington and Beijing, is intended to protect the security of critical information infrastructure supply chains and protect the Its purpose is to prevent risks and protect national security.

It did not disclose other details, such as which Micron products it was reviewing.

The United States has imposed a series of export controls on chip-making technology to China, fearing it could be used to make chips for applications such as artificial intelligence that China’s military might use. and blacklisted many of China’s biggest chip companies, including Micron. Rival Yangtze Memory Technologies Co Ltd.

Micron, one of the world’s largest memory chip makers, did not immediately respond to a request for comment. The company’s stock fell 3% on Friday to $61.15.

Wedbush Securities analyst Matthew Bryson said the punitive action against Micron is likely to be broader because other U.S. vendors with greater exposure to China may take similar action. It may suggest that it will change to

Japan announced on Friday that it would align its technology trade controls with U.S. pressure to curb China’s ability to manufacture advanced chips. The Netherlands, which manufactures sophisticated lithography equipment essential to making advanced chips, made a similar announcement earlier this month.

The memory chip market, dominated by South Korea’s Samsung Electronics (005930.KS), is suffering from weak consumer demand.

Micron derives about 10% of its revenue from China, but it wasn’t clear if the reviews would affect the company’s sales to non-Chinese customers there.

Analysts say most of the company’s products entering China are purchased by companies outside of China for use in products made in China.

Micron has offices in Shanghai and Shenzhen, and a chip packaging facility in Xi’an. In early 2022, the company announced that it would be closing his DRAM design operations in Shanghai.

Reporting by Ella Kao, Meg Shen, Brenda Goh, and Xavi Mehta. Additional reporting by Josh Horwitz.Editing by David Goodman, Mark Potter, Shaunak Dasgupta

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