US Chipmaker Micron Under Fire from China Over Cybersecurity Concerns Amid Escalating Tech Tensions
In a move that has sent shockwaves through the global tech industry, China's Cyberspace Administration (CAC) has launched an investigation into US-based chipmaker Micron Technology, one of America's largest memory chip producers. The probe comes as tensions between Washington and Beijing continue to escalate, with both sides imposing restrictions on the sale of key technology to each other.
The CAC announced on Friday that it would review Micron's products sold in China, citing concerns over cybersecurity risks posed by "hidden product problems" that could compromise national security. The move is seen as a direct response to US allies in Asia and Europe, which have announced new restrictions on the sale of semiconductors to Beijing.
Last month, Japan said it would restrict the export of advanced chip manufacturing equipment to countries including China, following similar moves by the United States and the Netherlands. Washington has also banned Chinese companies from buying advanced chips and chipmaking equipment without a license.
Shares in Micron sank 4.4% on Wall Street on Friday, the biggest drop in more than three months, after news of the probe broke. The company derives over 10% of its revenue from China and had warned earlier this year about potential risks related to sales in the country.
In an earlier statement, Micron said it was aware of the review and was cooperating fully with the CAC. The company has maintained that it stands by the security of its products, but the probe raises concerns over potential disruptions to supply chains.
China has criticized restrictions on tech exports, saying it "firmly opposes" such measures. However, Beijing is also exerting growing pressure on foreign companies to bring them into line with its agenda, as the country seeks to boost growth and job creation in an effort to address mounting economic challenges.
The latest move by China highlights the increasingly fraught relationship between Washington and Beijing over issues of technology and national security. As tensions continue to escalate, it remains to be seen how Micron and other US companies will navigate the complex landscape of regulations and restrictions imposed by Chinese authorities.
In a move that has sent shockwaves through the global tech industry, China's Cyberspace Administration (CAC) has launched an investigation into US-based chipmaker Micron Technology, one of America's largest memory chip producers. The probe comes as tensions between Washington and Beijing continue to escalate, with both sides imposing restrictions on the sale of key technology to each other.
The CAC announced on Friday that it would review Micron's products sold in China, citing concerns over cybersecurity risks posed by "hidden product problems" that could compromise national security. The move is seen as a direct response to US allies in Asia and Europe, which have announced new restrictions on the sale of semiconductors to Beijing.
Last month, Japan said it would restrict the export of advanced chip manufacturing equipment to countries including China, following similar moves by the United States and the Netherlands. Washington has also banned Chinese companies from buying advanced chips and chipmaking equipment without a license.
Shares in Micron sank 4.4% on Wall Street on Friday, the biggest drop in more than three months, after news of the probe broke. The company derives over 10% of its revenue from China and had warned earlier this year about potential risks related to sales in the country.
In an earlier statement, Micron said it was aware of the review and was cooperating fully with the CAC. The company has maintained that it stands by the security of its products, but the probe raises concerns over potential disruptions to supply chains.
China has criticized restrictions on tech exports, saying it "firmly opposes" such measures. However, Beijing is also exerting growing pressure on foreign companies to bring them into line with its agenda, as the country seeks to boost growth and job creation in an effort to address mounting economic challenges.
The latest move by China highlights the increasingly fraught relationship between Washington and Beijing over issues of technology and national security. As tensions continue to escalate, it remains to be seen how Micron and other US companies will navigate the complex landscape of regulations and restrictions imposed by Chinese authorities.
meanwhile, it's just gonna cause more drama & disrupt supply chains... and what's up with all the games being played between the US & china on tech exports? 
. i don't think us companies can keep playing it cool when china's just going to keep pushing back 
. something's gotta give, but what will it be? 
I remember when Micron was still dealing with the memory chip shortage last year 
. They were working overtime to keep up with demand from Apple, Samsung, and other big players in the industry. And now, it seems like they're facing a whole new set of challenges on the other side of the world 
.
. If Beijing can start cracking down on foreign companies, it could have a ripple effect throughout the entire tech industry.
. It feels like we're heading towards a new era of trade wars and technological espionage 
just when u think its safe to go back in the water... china's all over microns butt now 
maybe this probe is just a test run for them? or maybe they're just feeling pressure from japan and eu... idk 
.
its like they're trying to cut off our chip supply chain lol whoa this could get messy 
we need those chips for our gadgets fam 
. Don't even get me started on this whole chip manufacturing thing... it's like they're trying to create a dependency on their tech so we can't cut ties no matter how hard we try 
idk what's gonna happen with micron's sales in china tho but hopefully they can navigate it okay