Micron failed to pass a cybersecurity review, says the Cyberspace Administration of China
Tensions between China and the U.S. escalated over the weekend when the Cyberspace Administration of China (CAC) announced its decision to ban Idaho-based memory chipmaker Micron from selling to Chinese companies.
According to the CAC, Micron failed to pass a cybersecurity review, commenting in a statement: “The review found that Micron’s products have relatively serious cybersecurity risks, which pose significant security risks to China’s critical information infrastructure supply chain and would affect national security.”
Reuters quoted the US Commerce Department as saying the restrictions “have no basis in fact” and that they “are inconsistent with [China’s] assertions that it is opening its markets and committed to a transparent regulatory framework.”
Many believe it’s possible that China’s decision to ban Micron, which handled with an uncharacteristic level of transparency for the Chinese government, may be retaliation for the extreme steps taken by the Biden administration last year to block Chinese chipmakers’ access to advanced chips, as well as the crucial resources necessary to develop them.
Just last week, for instance, Chinese smartphone maker Oppo announced the abrupt closure of its in-house chip design unit. While slowing smartphone sales certainly contributed to this development, U.S. semiconductor sanctions that include any chips under the 14-nm threshold have made it exceedingly difficult for China’s fabless firms to find manufacturers for their designs.
Mainland China contributes to more than 10% of Micron Technology’s revenues, and on Monday the U.S. company saw its shares tumble 6% in premarket trading, while its Chinese competitors — such as Ingenic Semiconductor, Shenzhen Techwinsemi Technology and Toyou Feiji Electronics — experienced notable increases.
At this time Micron said it is “evaluating” China’s decision and security concerns while it considers how to proceed. “We look forward to continuing to engage in discussions with Chinese authorities,” it said.
