US Chip Maker Micron Under Fire as China Launches Cybersecurity Probe
In a move that underscores the escalating tech tensions between the US and China, Beijing has launched a cybersecurity probe into Micron Technology, one of America's largest memory chip makers. The probe is seen as retaliation after the US allies in Asia and Europe announced new restrictions on the sale of key technology to Beijing.
The Cyberspace Administration of China (CAC) will review products sold by Micron in the country, according to a statement released late on Friday. The move aims to "ensure the security of key information infrastructure supply chains, prevent cybersecurity risks caused by hidden product problems, and maintain national security."
Micron has been warned about such risks earlier, stating that the Chinese government may restrict its participation in the China market or prevent it from competing effectively with Chinese companies.
The probe comes on the same day that Japan, a US ally, said it would restrict the export of advanced chip manufacturing equipment to countries including China. Washington and its allies have also announced curbs on China's semiconductor industry, which strike at the heart of Beijing's bid to become a tech superpower.
Shares in Micron plummeted 4.4% on Wall Street Friday following the news, the biggest drop in more than three months. The Idaho-based company derives more than 10% of its revenue from China.
The move is part of Beijing's efforts to boost growth and job creation by wooing foreign investments. However, the city has also exerted growing pressure on foreign companies to bring them into line with its agenda.
In recent months, authorities have cracked down on foreign companies operating in China, detaining staff and imposing fines. The latest move is seen as a significant escalation of tensions between the US and China in the tech sector.
Micron has cooperated fully with the CAC and assured that it stands by the security of its products. However, the probe raises concerns about the future of business relations between the two nations.
In a move that underscores the escalating tech tensions between the US and China, Beijing has launched a cybersecurity probe into Micron Technology, one of America's largest memory chip makers. The probe is seen as retaliation after the US allies in Asia and Europe announced new restrictions on the sale of key technology to Beijing.
The Cyberspace Administration of China (CAC) will review products sold by Micron in the country, according to a statement released late on Friday. The move aims to "ensure the security of key information infrastructure supply chains, prevent cybersecurity risks caused by hidden product problems, and maintain national security."
Micron has been warned about such risks earlier, stating that the Chinese government may restrict its participation in the China market or prevent it from competing effectively with Chinese companies.
The probe comes on the same day that Japan, a US ally, said it would restrict the export of advanced chip manufacturing equipment to countries including China. Washington and its allies have also announced curbs on China's semiconductor industry, which strike at the heart of Beijing's bid to become a tech superpower.
Shares in Micron plummeted 4.4% on Wall Street Friday following the news, the biggest drop in more than three months. The Idaho-based company derives more than 10% of its revenue from China.
The move is part of Beijing's efforts to boost growth and job creation by wooing foreign investments. However, the city has also exerted growing pressure on foreign companies to bring them into line with its agenda.
In recent months, authorities have cracked down on foreign companies operating in China, detaining staff and imposing fines. The latest move is seen as a significant escalation of tensions between the US and China in the tech sector.
Micron has cooperated fully with the CAC and assured that it stands by the security of its products. However, the probe raises concerns about the future of business relations between the two nations.
china launching a cybersecurity probe on micron is like, a big deal! i mean, usa allies in asia and europe just announced new restrictions on tech sales to china, so now china's all like "we're gonna review your products too" 
it's like, one big game of techno-jenga 
4.4% drop is huge! they make most of their revenue from china, so this is like, super bad news for them 
i wonder if they'll be able to keep their business in china or not? 
does it make sense for the rest of us to just sit back and watch as these two giants play their games with our economy & security? 
china launching a cybersecurity probe on micron sounds like a big deal...i feel bad for the employees there who are gonna get affected 
but at the same time i get why china is doing it 
their tech ambitions aren't being taken seriously and this might be them showing they won't play nice anymore 
micron's profits are already in trouble after these new restrictions were announced 
But with these trade restrictions, it's like throwing a wrench into the works 
. Meanwhile, China's own chip market is expected to grow from $143 billion in 2020 to $341 billion in 2025 
. It's like they're trying to take our lunch money 
And the bigger picture is that this isn't just about Chip makers, it's about the entire US-China tech dynamic. 
. It feels like they're just kinda... tolerating China's demands? 
Which isn't gonna sit well with investors and customers alike when the dust settles.
. Not exactly what I'd call "good" for innovation or fair competition... 
... and now japan's getting involved too? 
... micron's shares plummeting 4.4% is huge 
It's like, fair game, right? 
. I don't want to see Chinese companies getting hit with harsher restrictions or worse 
.
. Not cool, Japan 
and china is trying to protect its own interests but also kinda being aggressive too... i don't know what's gonna happen next 
it's like they're playing catch-up and getting all salty about it 
. how's gonna play out? will they be able to find common ground or is it all about who blinks first 
? #TechTensionsRise #MicronUnderSIEGE
US is all bent outta shape over some new restrictions on tech sales to China, but now they're playing hardball too... remember when the whole "China is stealing our IP" thing started? 
and now we've got a chip maker getting roasted for not being good enough... idk what's more frustrating - Micron gets hit or their share price takes a nosedive 
who's gonna blink first? 
anyway i think this is gonna get interesting with japan restricting chip exports and all that jazz 
it's like a game of tech poker where everyone's trying to outmaneuver each other 
meanwhile micron's just sitting there like 'hey, i'm still gonna try to make china's chip dreams come true lol'