US Chip Maker Micron Faces Cybersecurity Probe by China as Tech Tension Escalates
In a move that is being seen as retaliation against US restrictions on Chinese tech companies, China has launched a cybersecurity probe into US-based memory chip maker Micron Technology. The Cyberspace Administration of China (CAC) will review products sold by Micron in the country, citing concerns over "ensuring the security of key information infrastructure supply chains, preventing cybersecurity risks caused by hidden product problems, and maintaining national security."
This move comes as tensions between the US and China continue to escalate in the tech sector. Last month, the Netherlands announced new restrictions on overseas sales of semiconductor technology to countries including China, citing the need to protect national security. The United States has also banned Chinese companies from buying advanced chips and chip-making equipment without a license.
Micron, which derives more than 10% of its revenue from China, told CNN that it is aware of the review and is cooperating fully with the CAC. However, shares in Micron sank 4.4% on Wall Street following the news, the biggest drop in more than three months.
China has strongly criticized restrictions on tech exports, saying last month it "firmly opposes" such measures. Beijing is seeking to woo foreign investments as it grapples with mounting economic challenges, but has also exerted growing pressure on foreign companies to bring them into line with its agenda.
The probe by China marks the latest development in a series of tensions between the two countries over tech exports and investment. Last year, China closed the Beijing office of US corporate intelligence firm Mintz Group and detained five local staff.
As the tech sector continues to be a focal point of the US-China rivalry, companies like Micron are facing increasing scrutiny from governments around the world. The implications for Micron and other US chip makers remain unclear, but the probe by China is likely to have significant consequences for the company's operations in the country.
In a move that is being seen as retaliation against US restrictions on Chinese tech companies, China has launched a cybersecurity probe into US-based memory chip maker Micron Technology. The Cyberspace Administration of China (CAC) will review products sold by Micron in the country, citing concerns over "ensuring the security of key information infrastructure supply chains, preventing cybersecurity risks caused by hidden product problems, and maintaining national security."
This move comes as tensions between the US and China continue to escalate in the tech sector. Last month, the Netherlands announced new restrictions on overseas sales of semiconductor technology to countries including China, citing the need to protect national security. The United States has also banned Chinese companies from buying advanced chips and chip-making equipment without a license.
Micron, which derives more than 10% of its revenue from China, told CNN that it is aware of the review and is cooperating fully with the CAC. However, shares in Micron sank 4.4% on Wall Street following the news, the biggest drop in more than three months.
China has strongly criticized restrictions on tech exports, saying last month it "firmly opposes" such measures. Beijing is seeking to woo foreign investments as it grapples with mounting economic challenges, but has also exerted growing pressure on foreign companies to bring them into line with its agenda.
The probe by China marks the latest development in a series of tensions between the two countries over tech exports and investment. Last year, China closed the Beijing office of US corporate intelligence firm Mintz Group and detained five local staff.
As the tech sector continues to be a focal point of the US-China rivalry, companies like Micron are facing increasing scrutiny from governments around the world. The implications for Micron and other US chip makers remain unclear, but the probe by China is likely to have significant consequences for the company's operations in the country.
... theyre always finding ways to retaliate against us when we try to restrict their tech exports... its like they think theyre above the law or something 
... micron is a big company and if they're being forced to cooperate with this probe, it's gotta be costing them some serious cash 
... i feel bad for the chinese people who are getting hurt by all these trade wars 
... can we just find a way to coexist peacefully without resorting to threats and retaliation? 
microns shares just plummeted 4.4% lol like how r they gonna recover from this? and its not like micron was doin anything wrong or watever but nope china just had to go and retaliate by launching a probe 
i mean we all know the us has been restricting chinese tech companies from buying advanced chips and chip-making equipment and now china is doing the same back 
idk man its getting so intense in the tech world rn
. I mean, Micron's like a pawn in this game between the US and China, and it's got to navigate all these rules and regulations that are just gonna affect their bottom line 
, and companies like Micron were trailblazers in the chip-making game. Now, it feels like they're just tryin' to stay ahead of all these regulatory bodies and governments that are gonna come after 'em with a vengeance 
.
. But what does that really mean for the little guy? The consumer who just wants a new gaming console or laptop without breakin' the bank 
. The US-China rivalry is just heating up, and Micron's gonna feel the burn 
that would be super bad news for the company... and also kinda worrying for the global chip shortage situation we're still dealing with 
and I'm thinking about how all this tech drama between the US & China is stressing me out 
micron's 4.4% dip in shares is wild, but honestly, who needs that kind of stress when you could be working on your downward-facing dog flexibility 
?
china launching a cybersecurity probe on micron because of some us restrictions on chinese tech companies? that just sounds like a bunch of backhanded politicking 