VoidWhisper
Well-known member
Micron Technology is facing a growing headache in China as the country's cybersecurity watchdog launches an investigation into the US-based memory chip maker, citing potential national security risks.
The Cyberspace Administration of China (CAC) has initiated a probe into Micron's products sold in the country, which are used to power everything from smartphones to servers. The move comes amid heightened tensions between Washington and Beijing over technology exports, with the US and its allies imposing curbs on the sale of key tech to China.
In response to these restrictions, Japan announced that it would limit the export of advanced chip manufacturing equipment to countries including China, while the Netherlands also unveiled new rules on overseas sales of semiconductor technology. These developments have sent shockwaves through the global tech industry, with investors and companies scrambling to navigate the complex web of international regulations.
For Micron Technology, which derives over 10% of its revenue from China, this latest development is a major concern. The company has warned in an earlier filing that it may face risks associated with restrictions on its business in the country, including potential losses or disruptions to operations.
As tensions between the US and China escalate, Beijing's government has been increasingly vocal about its opposition to restrictions on technology exports. Last month, the Chinese government said it "firmly opposes" such measures, highlighting its commitment to promoting its own tech industry and reducing dependence on foreign imports.
However, in recent months, authorities have taken a more hardline approach towards foreign companies operating in China. The Beijing office of US corporate intelligence firm Mintz Group was closed last month, and several local staff were detained. Deloitte's operations in Beijing were also suspended for three months after the company failed to comply with Chinese regulations.
The latest probe into Micron Technology is a major escalation in this trend, with the CAC seeking to ensure that key information infrastructure supply chains are secure from potential cybersecurity risks. The move raises significant questions about the future of US-China trade relations and the impact on companies like Micron that operate globally.
With shares in Micron sinking 4.4% on Wall Street following the news, the company is facing growing pressure to navigate this complex regulatory landscape. As Beijing continues to push for greater control over its tech industry, foreign companies must adapt to changing conditions or risk being squeezed out of the market.
The Cyberspace Administration of China (CAC) has initiated a probe into Micron's products sold in the country, which are used to power everything from smartphones to servers. The move comes amid heightened tensions between Washington and Beijing over technology exports, with the US and its allies imposing curbs on the sale of key tech to China.
In response to these restrictions, Japan announced that it would limit the export of advanced chip manufacturing equipment to countries including China, while the Netherlands also unveiled new rules on overseas sales of semiconductor technology. These developments have sent shockwaves through the global tech industry, with investors and companies scrambling to navigate the complex web of international regulations.
For Micron Technology, which derives over 10% of its revenue from China, this latest development is a major concern. The company has warned in an earlier filing that it may face risks associated with restrictions on its business in the country, including potential losses or disruptions to operations.
As tensions between the US and China escalate, Beijing's government has been increasingly vocal about its opposition to restrictions on technology exports. Last month, the Chinese government said it "firmly opposes" such measures, highlighting its commitment to promoting its own tech industry and reducing dependence on foreign imports.
However, in recent months, authorities have taken a more hardline approach towards foreign companies operating in China. The Beijing office of US corporate intelligence firm Mintz Group was closed last month, and several local staff were detained. Deloitte's operations in Beijing were also suspended for three months after the company failed to comply with Chinese regulations.
The latest probe into Micron Technology is a major escalation in this trend, with the CAC seeking to ensure that key information infrastructure supply chains are secure from potential cybersecurity risks. The move raises significant questions about the future of US-China trade relations and the impact on companies like Micron that operate globally.
With shares in Micron sinking 4.4% on Wall Street following the news, the company is facing growing pressure to navigate this complex regulatory landscape. As Beijing continues to push for greater control over its tech industry, foreign companies must adapt to changing conditions or risk being squeezed out of the market.