US Chip Maker Micron Under Fire from China in Escalating Tech Tensions
The Chinese government has launched a probe into US chip maker Micron Technology as part of a broader push to protect its domestic semiconductor industry. The move comes on the heels of new restrictions announced by US allies Japan and the Netherlands, which aim to limit the sale of key technology to Beijing.
As tensions in the tech sector continue to escalate, China has taken steps to ensure the security of its information infrastructure supply chains. This includes reviewing products sold by Micron in the country, according to a statement from the Cyberspace Administration of China (CAC). The watchdog cited concerns over "hidden product problems" and the potential for cybersecurity risks.
The probe into Micron is part of a larger effort by Beijing to boost its domestic semiconductor industry and reduce its dependence on foreign companies. This comes as the Chinese government seeks to woo global CEOs with promises of a business-friendly environment and services.
However, China has also been exerting pressure on foreign companies to bring them into line with its agenda. In recent months, authorities have closed the Beijing office of US corporate intelligence firm Mintz Group and detained several staff members. Deloitte's operations in Beijing were suspended for three months earlier this year, along with a $31 million fine over alleged lapses in auditing work.
The new restrictions on tech exports have been met with criticism from China, which says it "firmly opposes" such measures. However, the government remains committed to protecting its domestic industry and has vowed to take action against companies that fail to comply with its regulations.
Shares in Micron fell 4.4% on Wall Street following the news of the probe, marking the largest drop in more than three months. The company derives over 10% of its revenue from China, making it a key target for Beijing's efforts to boost domestic production.
Micron has stated that it is aware of the review and is cooperating fully with the CAC. However, the move raises concerns about the potential impact on the company's operations in China and its ability to compete effectively with local firms.
As tensions in the tech sector continue to escalate, it remains to be seen how Micron will navigate the complex regulatory landscape in China. The probe into the US chip maker marks a significant escalation in Beijing's efforts to protect its domestic industry, and could have far-reaching implications for the global semiconductor market.
The Chinese government has launched a probe into US chip maker Micron Technology as part of a broader push to protect its domestic semiconductor industry. The move comes on the heels of new restrictions announced by US allies Japan and the Netherlands, which aim to limit the sale of key technology to Beijing.
As tensions in the tech sector continue to escalate, China has taken steps to ensure the security of its information infrastructure supply chains. This includes reviewing products sold by Micron in the country, according to a statement from the Cyberspace Administration of China (CAC). The watchdog cited concerns over "hidden product problems" and the potential for cybersecurity risks.
The probe into Micron is part of a larger effort by Beijing to boost its domestic semiconductor industry and reduce its dependence on foreign companies. This comes as the Chinese government seeks to woo global CEOs with promises of a business-friendly environment and services.
However, China has also been exerting pressure on foreign companies to bring them into line with its agenda. In recent months, authorities have closed the Beijing office of US corporate intelligence firm Mintz Group and detained several staff members. Deloitte's operations in Beijing were suspended for three months earlier this year, along with a $31 million fine over alleged lapses in auditing work.
The new restrictions on tech exports have been met with criticism from China, which says it "firmly opposes" such measures. However, the government remains committed to protecting its domestic industry and has vowed to take action against companies that fail to comply with its regulations.
Shares in Micron fell 4.4% on Wall Street following the news of the probe, marking the largest drop in more than three months. The company derives over 10% of its revenue from China, making it a key target for Beijing's efforts to boost domestic production.
Micron has stated that it is aware of the review and is cooperating fully with the CAC. However, the move raises concerns about the potential impact on the company's operations in China and its ability to compete effectively with local firms.
As tensions in the tech sector continue to escalate, it remains to be seen how Micron will navigate the complex regulatory landscape in China. The probe into the US chip maker marks a significant escalation in Beijing's efforts to protect its domestic industry, and could have far-reaching implications for the global semiconductor market.
i mean micron's got 10% of its revenue from china and now they're under probe like what's next israel or south korea gonna get the same treatment too? 
it's all about protecting those domestic semiconductors but at what cost to global trade and innovation? 
and can we talk about how unfair this is for foreign companies that have been working with china for years now they're getting hit with these new restrictions and fines like they just appear out of thin air 
it's all about the dollar and power and i'm not sure anyone's gonna come out on top in this game 
... micron's got nothing to do with china being slow or whatever, they're just trying to boost their own industry... like, i get it, but micron's not a threat to anyone, they're just making chips 
... and now china's all like 'you gotta play by our rules' 
...
they're basically saying we need you to play by our rules or else 
. IT'S LIKE, CAN'T THEY JUST LET MICRON DO ITS THING? 
.
Just got word from inside the tech circle that Micron is about to get hit with some major fines if they don't shape up their sales strategy in China 
. China's been trying to boost its domestic chip industry for years, and now they're taking it up a notch by reviewing products from companies like Micron 
.