China bans US chip giant Micron

China bans US chip giant Micron

May 22, 2023

Beijing [China], May 22: China said on May 21 that the products of Micron memory chip company (headquartered in Idaho, US) pose a national security risk and banned Micron from selling chips to operators of China's key information infrastructure.
Reuters reported on May 22 that Micron , the US chip industry giant, failed to pass Beijing's cybersecurity review and was therefore banned from selling to operators of China 's key information infrastructure. (CIIO). In particular, CIIO covers many areas of activity, from telecommunications to banks and water supply companies.
Therefore, all CIIO companies and businesses must stop buying Micron products , according to a decision from the Cyber Security Assessment Office of the Cybersecurity Administration of China (CAC).
CIIO regulations in China are extensive, covering a multitude of areas considered important to national security and human life. These include public sectors such as telecommunications services, energy, transport, water resources and finance.
The announcement comes 50 days after the CAC opened an investigation into Micron products from the end of March on national security issues. According to the latest CAC announcement, Micron products pose a serious cybersecurity risk, posing a significant security threat to China's key information infrastructure supply chain and national security. .
The decision effectively bans the sale of Micron products in China almost entirely, wiping out a market that contributes about 11% of the US company's $30.8 billion in 2022 revenue.
Micron's major customers in China are Lenovo, Xiaomi, Inspur, ZTE, Coolpad, China Electronics Corp and Oppo, respectively, according to data compiled by Bloomberg.
The US and Micron have not yet commented on China's decision.
Last week, Micron announced plans to invest up to 500 billion yen ($3.7 billion) in ultra-violet light (EUVL) technology in Japan . It is a state-of-the-art, high-precision lithography technology, with Micron being the first chip manufacturer to bring high-end chip manufacturing technology to Japan.
Japan, once the world leader in chip production, is trying to rebuild its domestic chip production base by attracting foreign investment. And Micron, Samsung are the chip industry giants are taking advantage of investment opportunities in Japan.
Source: ThanhNien Newspaper