Micron Technology is facing a major headache as China launches a cybersecurity probe into the US chip maker, one of America's largest memory chip makers. The move comes as tensions between the two superpowers escalate in the tech sector.
China's Cyberspace Administration has launched an investigation into Micron's products sold in the country, citing concerns over security risks and the potential for hidden problems that could compromise key information infrastructure supply chains. The probe is aimed at "ensuring the security of key information infrastructure supply chains, preventing cybersecurity risks caused by hidden product problems, and maintaining national security."
This move is a direct response to new restrictions announced by US allies in Asia and Europe on the sale of key technology to Beijing. Japan has also restricted exports of advanced chip manufacturing equipment to countries including China.
Washington's curbs on China's semiconductor industry are seen as a significant blow to Beijing's bid to become a tech superpower. Last month, the Netherlands also unveiled new restrictions on overseas sales of semiconductor technology, and in October, the US banned Chinese companies from buying advanced chips and chipmaking equipment without a license.
Micron has stated that it is aware of the review and is cooperating fully with the investigation. The company's shares have taken a hit, sinking 4.4% on Wall Street following the news, the biggest drop in more than three months. Micron derives over 10% of its revenue from China.
This move is part of Beijing's growing pressure on foreign companies to bring them into line with its agenda. Last month, authorities closed the Beijing office of a US corporate intelligence firm and detained five local staff, while days earlier they suspended Deloitte's operations in Beijing for three months over alleged lapses in its work auditing a state-owned distressed debt manager.
China has strongly criticized restrictions on tech exports, saying it "firmly opposes" such measures. However, Beijing is seeking to woo foreign investments as it grapples with mounting economic challenges and seeks to boost growth and job creation.
The probe into Micron Technology is a significant development in the escalating tech tensions between the US and China. It remains to be seen how this move will play out and what impact it will have on the global semiconductor industry.
China's Cyberspace Administration has launched an investigation into Micron's products sold in the country, citing concerns over security risks and the potential for hidden problems that could compromise key information infrastructure supply chains. The probe is aimed at "ensuring the security of key information infrastructure supply chains, preventing cybersecurity risks caused by hidden product problems, and maintaining national security."
This move is a direct response to new restrictions announced by US allies in Asia and Europe on the sale of key technology to Beijing. Japan has also restricted exports of advanced chip manufacturing equipment to countries including China.
Washington's curbs on China's semiconductor industry are seen as a significant blow to Beijing's bid to become a tech superpower. Last month, the Netherlands also unveiled new restrictions on overseas sales of semiconductor technology, and in October, the US banned Chinese companies from buying advanced chips and chipmaking equipment without a license.
Micron has stated that it is aware of the review and is cooperating fully with the investigation. The company's shares have taken a hit, sinking 4.4% on Wall Street following the news, the biggest drop in more than three months. Micron derives over 10% of its revenue from China.
This move is part of Beijing's growing pressure on foreign companies to bring them into line with its agenda. Last month, authorities closed the Beijing office of a US corporate intelligence firm and detained five local staff, while days earlier they suspended Deloitte's operations in Beijing for three months over alleged lapses in its work auditing a state-owned distressed debt manager.
China has strongly criticized restrictions on tech exports, saying it "firmly opposes" such measures. However, Beijing is seeking to woo foreign investments as it grapples with mounting economic challenges and seeks to boost growth and job creation.
The probe into Micron Technology is a significant development in the escalating tech tensions between the US and China. It remains to be seen how this move will play out and what impact it will have on the global semiconductor industry.