US Chip Maker Micron Under Scrutiny as China Escalates Cybersecurity Probe
In a move that further heightens tensions between Washington and Beijing, China has launched a cybersecurity probe into US chip maker Micron Technology, one of America's largest memory chip manufacturers. The Cyberspace Administration of China (CAC) will review products sold by Micron in the country, according to a statement released late on Friday.
The CAC cited concerns over "ensuring the security of key information infrastructure supply chains, preventing cybersecurity risks caused by hidden product problems, and maintaining national security" as justification for the probe. This move comes as US allies in Asia and Europe have announced new restrictions on the sale of key technology to Beijing, which China has strongly criticized.
The escalating tensions are centered around Washington's efforts to curb China's growing semiconductor industry, which is seen as a key component of Beijing's bid to become a tech superpower. The United States has banned Chinese companies from buying advanced chips and chip-making equipment without a license, while Japan has restricted the export of advanced chip manufacturing equipment to countries including China.
Micron Technology's shares have taken a hit following the news, sinking 4.4% on Wall Street Friday and another 1.2% lower on Monday. The Idaho-based company derives more than 10% of its revenue from China, making it vulnerable to any restrictions or disruptions in the Chinese market.
In an earlier filing, Micron had warned of such risks, stating that "the Chinese government may restrict us from participating in the China market or may prevent us from competing effectively with Chinese companies." The company has since said it is cooperating fully with the CAC and stands by the security of its products.
In a move that further heightens tensions between Washington and Beijing, China has launched a cybersecurity probe into US chip maker Micron Technology, one of America's largest memory chip manufacturers. The Cyberspace Administration of China (CAC) will review products sold by Micron in the country, according to a statement released late on Friday.
The CAC cited concerns over "ensuring the security of key information infrastructure supply chains, preventing cybersecurity risks caused by hidden product problems, and maintaining national security" as justification for the probe. This move comes as US allies in Asia and Europe have announced new restrictions on the sale of key technology to Beijing, which China has strongly criticized.
The escalating tensions are centered around Washington's efforts to curb China's growing semiconductor industry, which is seen as a key component of Beijing's bid to become a tech superpower. The United States has banned Chinese companies from buying advanced chips and chip-making equipment without a license, while Japan has restricted the export of advanced chip manufacturing equipment to countries including China.
Micron Technology's shares have taken a hit following the news, sinking 4.4% on Wall Street Friday and another 1.2% lower on Monday. The Idaho-based company derives more than 10% of its revenue from China, making it vulnerable to any restrictions or disruptions in the Chinese market.
In an earlier filing, Micron had warned of such risks, stating that "the Chinese government may restrict us from participating in the China market or may prevent us from competing effectively with Chinese companies." The company has since said it is cooperating fully with the CAC and stands by the security of its products.
and now the shares are like, totally tanking 
i mean, who wouldn't be worried about being blocked outta china's massive market tho? 
it's like, china's trying to level the playing field and micron's all like "nah, we're good" 
but seriously, this is getting super intense... 
so china's doing this probe on micron tech because they want to protect their own chip industry, but at the same time, micron's major player in china which makes them a target for restrictions 
it's all about power struggles between the us and china in the chip game... and now the prices are taking a hit 
And now China is basically asking for audits and reviews of all the chips they sell there... like, isn't that just good business practice? 
It's not like they're trying to snoop on everyone or anything. The whole thing feels like a big game of "let's blame each other" 
china's just trying to protect itself, you know? they're not just gonna let china's tech industry grow without looking over their shoulder, right? 
and america's all like "we're gonna restrict china's access to chips", but what if that backfires? 
it's not like they're being unfair or anything 
like, it's all a bit concerning 
Hasn't the US already made some pretty big moves against Chinese tech giants? Like, what's the point of playing hardball if they're not gonna back it up with some real consequences?