In anticipation of security risks… China is examining the American “Micron” chips

The Chinese Cyberspace Administration revealed today, Friday, that it will conduct an examination of the products of the American company Micron Technology, which manufactures memory chips in the country, in anticipation of the presence of security risks in them.

The administration said in a brief statement that the move, which comes amid a dispute over chip technology between Washington and Beijing, is aimed at protecting the security of the supply chain of critical information infrastructure, preventing hidden risks and protecting national security, according to Reuters.

The agency gave no other details, including which Micron products it would be subject to inspection.

export controls

The United States imposed a series of export controls on chip-making technology to China, fearing it would be used to produce chips for applications such as artificial intelligence that could be used by the Chinese army, and blacklisted several of China’s largest chip companies, including Micron’s rival Yangtze Memory Technologies.

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

punitive measures

“The punitive measures against Micron may signal a broader shift in Chinese policy with other US vendors vulnerable to potential Chinese action against them,” said Matthew Bryson, an analyst at Wedbush Securities.

And Japan announced on Friday that it would harmonize its controls in the field of technology trade with the United States seeking to limit China’s ability to manufacture advanced chips.

The Netherlands, which produces high-end printing equipment needed to make advanced chips, made a similar announcement earlier this month.

10% of Micron’s revenues are from China

Weak consumer demand has disrupted the memory chip market, which is dominated by South Korea’s Samsung.

About 10% of Micron’s revenue comes from China, but the impact of the inspection on the company’s sales to non-Chinese customers in the country has not yet been pumped out.

Analysts said the bulk of the company’s products flowing into China were bought by non-Chinese companies for use in products manufactured in the country. Micron has offices in Shanghai and Shenzhen and a foil packaging facility in Xi’an.

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