China’s cyberspace regulator will conduct a cybersecurity review of products sold in the country by US memory chip maker Micron Technology regulator said on Friday. The move, which comes amid a dispute over chip technology between Washington and Beijing, is aimed at protecting the security of the supply chain for critical information infrastructure, preventing hidden risks and protecting national security, China’s Cyberspace Administration said in a brief statement.
He did not provide any other details, including which products Micron was evaluating. The United States has imposed a series of export controls on chip-making technology to China over fears it could be used to make chips for applications such as artificial intelligence that could be used by the Chinese military, and has blacklisted a number of China’s biggest chip firms, including Micron. Competitors Yangtze Memory Technologies Co Ltd.
Micron, one of the world’s largest makers of memory chips, did not immediately respond to a request for comment. The company’s shares fell 3% to $61.15 on Friday.
“The crackdown on Micron could signal a broader shift in China’s policy toward other U.S. vendors with heavy Chinese involvement, which are now at risk of similar actions,” Wedbush Securities analyst Matthew Bryson said.
On Friday, Japan announced it would align its technology trade controls with U.S. pressure to curb China’s ability to make advanced chips. The Netherlands, for which advanced lithography facilities are critical to the production of advanced chips, made a similar announcement earlier this month.
Weak consumer demand has roiled the memory chip market, which is dominated by South Korea’s Samsung Electronics. Micron gets about 10% of its revenue from China, but it was unclear whether the review would affect the company’s sales to non-Chinese customers in the country.
According to analysts, the majority of the company’s products flowing into China are bought by non-Chinese firms for use in products manufactured in the country.
Micron has offices in Shanghai and Shenzhen, as well as a chip packaging facility in the city of Xian. In early 2022, the company announced that it will close its DRAM design operations in Shanghai.
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