Micron Technology, one of America's largest memory chip makers, is under scrutiny from China's Cyberspace Administration in a move that appears to be retaliation against US allies in Asia and Europe who have announced new restrictions on the sale of key technology to Beijing.
The probe, launched late Friday, aims to "ensure the security of key information infrastructure supply chains, prevent cybersecurity risks caused by hidden product problems, and maintain national security." Micron has warned earlier that it may face challenges selling its products in China due to the country's strict regulations.
The US has banned Chinese companies from buying advanced chips and chip-making equipment without a license, while Japan has restricted the export of advanced chip manufacturing equipment to countries including China. The Netherlands has also unveiled new restrictions on overseas sales of semiconductor technology, citing national security concerns.
Shares in Micron dropped 4.4% on Wall Street following the news, their largest decline in over three months, with shares closing another 1.2% lower on Monday. The company derives more than 10% of its revenue from China and has previously warned of such risks.
In an earlier filing, Micron had said that "the Chinese government may restrict us from participating in the China market or may prevent us from competing effectively with Chinese companies." This is in line with Beijing's growing pressure on foreign companies to bring them into line with its agenda.
China has strongly criticized restrictions on tech exports, saying it "firmly opposes" such measures. However, Beijing continues to exert pressure on foreign companies, with authorities closing the Beijing office of a US corporate intelligence firm and detaining staff last month.
The probe, launched late Friday, aims to "ensure the security of key information infrastructure supply chains, prevent cybersecurity risks caused by hidden product problems, and maintain national security." Micron has warned earlier that it may face challenges selling its products in China due to the country's strict regulations.
The US has banned Chinese companies from buying advanced chips and chip-making equipment without a license, while Japan has restricted the export of advanced chip manufacturing equipment to countries including China. The Netherlands has also unveiled new restrictions on overseas sales of semiconductor technology, citing national security concerns.
Shares in Micron dropped 4.4% on Wall Street following the news, their largest decline in over three months, with shares closing another 1.2% lower on Monday. The company derives more than 10% of its revenue from China and has previously warned of such risks.
In an earlier filing, Micron had said that "the Chinese government may restrict us from participating in the China market or may prevent us from competing effectively with Chinese companies." This is in line with Beijing's growing pressure on foreign companies to bring them into line with its agenda.
China has strongly criticized restrictions on tech exports, saying it "firmly opposes" such measures. However, Beijing continues to exert pressure on foreign companies, with authorities closing the Beijing office of a US corporate intelligence firm and detaining staff last month.
? I mean, Micron's got to be worried about this probe from China's Cyberspace Administration - it's like they're playing a game of "tech chicken" 
. First, you've got the US and Japan restricting Chinese companies' access to advanced chips, and now China's pushing back with their own rules 
.
. And now this probe? It's like a domino effect - if one country starts restricting tech exports, others will follow suit 
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. It's almost as if Beijing is trying to pressure foreign companies into conforming to its agenda, which could have far-reaching implications for the global tech industry. 
. we could all benefit from being more transparent about our tech and making sure we're not compromising national security 
. maybe it's time for us to start thinking about how we can protect ourselves from these kinds of risks, rather than just waiting for someone else to step up 
but at the end of the day, i think both sides are being super cautious here... it's not just about chips, it's about who gets to control the tech landscape... anyway, this is gonna be interesting to watch play out 
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, and now their shares are plummeting 
. It's like, can't we all just coexist? 
And what's the real motive here? Is it really about security or is it more about China pushing its agenda? 
. Let's hope Micron can navigate this choppy waters and find a way to stay ahead 
.
. Micron's in a tough spot because it's trying to maintain its presence in China while avoiding getting caught up in the US-China tech spat. But here's the thing: sometimes you gotta make difficult choices and stand up for what's best for your business, even if it means alienating some customers. Remember, with great power comes great responsibility 
It's time for companies like Micron to take a step back, assess the risks and benefits, and think strategically about how they can mitigate potential threats. After all, in today's fast-paced world, adaptability is key 
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. I hope they can navigate these waters without too much damage to their business 
. But seriously, can't we all just get along and focus on innovation instead of all this politics? 
. I mean, think about all the sensitive info that Micron's chips are used for - military hardware, medical equipment... you get it. It's not just about the money; it's about national security.
. Anyway, let's keep an eye on this situation and hope it doesn't escalate further 
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. That way, everyone can win 
!
Their shares are tanking and they're literally one of the biggest players in memory chip making 
anywayz, its pretty sus that china's crackin down on foreign companies 'cause they dont wanna b held back by their own rules 
micron's shares dropped a lot cuz of this... i guess thats what happens wen u mess with the big dogs 
. anyway, micron's takin' a hit, 4.4% drop in shares? 
that's no joke!
i feel bad for their chinese customers tho, 10% of their revenue is a lot and idk how they're gonna handle this. but honestly, can't say im shocked. china's been trying to play hardball with foreign companies for ages 
. like what's next? china starts probing us for our memes 
. seriously though, this is a classic case of a domino effect - china restricts exports to the west, then the west responds with restrictions on china, and now micron tech is getting hit 
. it just goes to show how interconnected everything is in today's global economy 
. But honestly, can't we just chill and work together? 
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. I'm not saying it's fair or justified, but... well, you see where I'm going 
. But in the meantime, Micron's gotta deal with the fallout 
Sorry, I know that sounds sappy 
, but... yeah.