Beijing cybersecurity regulator has barred Chinese operators of critical infrastructures from buying products from the US chip maker Micron.
According to the Cyberspace Administration of China (CAC), Micron’s products failed the network security review.
Go deeper with GlobalData
The decision comes amid escalating tensions between the US and China over semiconductor technology.
CAC’s move could impact sectors such as telecommunications, finance and transport among several others.
“The review found that Micron’s products have serious network security risks, which pose significant security risks to China’s critical information infrastructure supply chain, affecting China’s national security,” the regulator was quoted by Reuters as saying in a statement.
According to The New York Times (NYT), barring Micron from supplying chips to key companies could impact China’s supply chains, leading Micron’s Chinese customers to search for alternatives such as domestically produced or Korean memory chips.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataSouth Korean companies such as Samsung and SK Hynix, who are already competitors of Micron, have established business ties with China.
Micron said it was “evaluating the conclusion” and assessing its next step, adding that it was “continuing to engage in discussions with Chinese authorities,” NYT report said.
In late March, Beijing launched a cybersecurity assessment of Micron, referring to it as a routine regulatory action.
This move by Beijing followed the restrictions imposed by Washington in October 2023 targeting China’s semiconductor industry.
Following Micron’s security review, China has been actively striving to strengthen its domestic chip industry.
Beijing has invested billions of dollars in achieving self-sufficiency, leading Chinese companies across the supply chain to seek alternatives to Western chips and components.
CAC provided little information as to what they had found that presented significant risks, or what Micron products would be impacted.
Additionally, it has not clearly explained what businesses must do to pass a cybersecurity review.
In a statement, a US Commerce Department spokesperson said the action taken against Micron, “along with recent raids and targeting of other American firms, is inconsistent with the People’s Republic of China’s assertions that it is opening its markets and committed to a transparent regulatory framework.”
The department intends to address this matter by directly engaging with Chinese officials, the announcement stated.
Last week, Micron said that it aims to invest $3.6bn in Japan to produce advanced chips.
