US chipmaker Micron Technology is facing a cybersecurity probe in China as tensions between Washington and Beijing escalate over tech exports.
China's Cyberspace Administration has launched an investigation into products sold by Micron, one of America's largest memory chip makers, citing concerns about "ensuring the security of key information infrastructure supply chains" and preventing "cybersecurity risks caused by hidden product problems". The probe is seen as retaliation against recent restrictions imposed on China's semiconductor industry by US allies in Asia and Europe.
The move comes amidst growing pressure from Beijing to bring foreign companies into line with its agenda. Last month, authorities closed the Beijing office of a US corporate intelligence firm, Mintz Group, and detained five local staff. Days earlier, they suspended Deloitte's operations in Beijing for three months and imposed a fine of $31 million over alleged lapses in its work auditing a state-owned distressed debt manager.
The probe is also seen as an attempt by China to counter growing restrictions on tech exports. In October, the US banned Chinese companies from buying advanced chips and chipmaking equipment without a license. Japan, a US ally, has since announced similar curbs on export of advanced chip manufacturing equipment to countries including China.
Shares in Micron sank 4.4% on Wall Street following the news, the biggest drop in more than three months, as the company derives over 10% of its revenue from China. In an earlier filing, Micron had warned of such risks and stated that the Chinese government may restrict it from participating in the China market or prevent it from competing effectively with Chinese companies.
The probe has sparked concerns about the potential impact on global supply chains and the future of US-China trade relations. As tensions between Washington and Beijing continue to escalate, companies are facing increasing pressure to navigate complex and ever-changing regulatory landscapes.
In a statement, Micron said it was aware of the review and would cooperate fully with the investigation. However, shares in the company fell further on Monday, closing another 1.2% lower. The probe has highlighted the growing risks and uncertainties for companies operating in China and the need for greater transparency and cooperation between governments and industry players.
China's Cyberspace Administration has launched an investigation into products sold by Micron, one of America's largest memory chip makers, citing concerns about "ensuring the security of key information infrastructure supply chains" and preventing "cybersecurity risks caused by hidden product problems". The probe is seen as retaliation against recent restrictions imposed on China's semiconductor industry by US allies in Asia and Europe.
The move comes amidst growing pressure from Beijing to bring foreign companies into line with its agenda. Last month, authorities closed the Beijing office of a US corporate intelligence firm, Mintz Group, and detained five local staff. Days earlier, they suspended Deloitte's operations in Beijing for three months and imposed a fine of $31 million over alleged lapses in its work auditing a state-owned distressed debt manager.
The probe is also seen as an attempt by China to counter growing restrictions on tech exports. In October, the US banned Chinese companies from buying advanced chips and chipmaking equipment without a license. Japan, a US ally, has since announced similar curbs on export of advanced chip manufacturing equipment to countries including China.
Shares in Micron sank 4.4% on Wall Street following the news, the biggest drop in more than three months, as the company derives over 10% of its revenue from China. In an earlier filing, Micron had warned of such risks and stated that the Chinese government may restrict it from participating in the China market or prevent it from competing effectively with Chinese companies.
The probe has sparked concerns about the potential impact on global supply chains and the future of US-China trade relations. As tensions between Washington and Beijing continue to escalate, companies are facing increasing pressure to navigate complex and ever-changing regulatory landscapes.
In a statement, Micron said it was aware of the review and would cooperate fully with the investigation. However, shares in the company fell further on Monday, closing another 1.2% lower. The probe has highlighted the growing risks and uncertainties for companies operating in China and the need for greater transparency and cooperation between governments and industry players.
so micron's got a cyber security probe and their shares are tanking 
like, totally not unexpected... china's always playing hard to get when it comes to tech exports 
and now the US is all "we're gonna crack down" 
i'm kinda surprised it took them this long to step up the game 
anyway, companies need to be ready for a whole lotta regulatory shenanigans in china 
and if you're not willing to play ball 
, well... you might just get left behind 
. I mean, it's not like they're doing anything wrong or violating any Chinese laws, but I guess that's just how Beijing operates right now. It's all about trying to assert control over foreign companies and get them to play ball with their agenda 
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But seriously, companies need to be more aware of the risks involved in operating in China. It's not like they're just talking about it anymore; it's time to take action 
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it's like they're playing a game of whack-a-mole between the two nations. i mean i get it, china wants its own chip makers to dominate the market, but this is getting intense 
micron needs to step up their game if they wanna stay ahead in the competition 
. We need more transparency and cooperation between governments and industries, like, ASAP! 
. Can't we just chill out for a sec and focus on promoting peace and understanding instead? 
. I mean, if they're really that worried about security, why are they still selling chips to China? It's just a cover for the US to be all passive-aggressive towards Beijing 
. And now Micron's revenue is gonna take a hit because of it... yay 
. I'm surprised it didn't happen sooner, tbh. Companies have been playing with fire when they do business in China, and this is just another example of how things can go south 
.
companies are feeling the squeeze, and now global supply chains are starting to get impacted. hope micron can navigate this fine print without taking too much damage 
meanwhile, the us is all like 'we don't want chinese companies getting advanced tech without a license' 
but it's hard to say who's right or wrong here, it's all just too complicated 
.
. This probe might just be a smokescreen for bigger things... 
It's time for companies to speak up and demand greater transparency from governments and industry players on this issue! 
US companies are being held hostage by Chinese cybersecurity 
and now Micron is feeling the heat 
Their shares are tanking 
It's a whole big mess 
and it's not just Micron, other companies are getting squeezed too 
and what really gets my goat is that it's just another case of beijing trying to strong-arm its way into the tech game 
newsflash: you're the one imposing restrictions on chinese companies and now they're retaliating? not cool, china 
