China bars procurement of Micron Technology products due to network security risks

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    21st May 2023 – (Beijing) The Cyberspace Administration of China (CAC) announced on Sunday that products made by U.S. memory chip manufacturer Micron Technology had failed its network security review. The CAC cited serious network security risks associated with Micron’s products and their potential impact on China’s critical information infrastructure supply chain and national security.

    As a result, operators of critical information infrastructure in sectors ranging from transport to finance will be required to stop procuring from Micron. The CAC did not provide details of the specific risks identified or which Micron products would be impacted.

    Micron Technology derives around 10% of its revenue from China, but it remains unclear whether the decision will affect the company’s sales to non-Chinese customers in the country. Analysts suggest that the larger chunk of the company’s products flowing into China are being purchased by non-Chinese firms for use in products manufactured in the country.

    China’s move to bar Micron’s products comes amid an ongoing dispute over chip technology between the U.S. and China. The U.S. has imposed a series of export controls on chip-making technology to China and blacklisted Chinese firms, including Micron rival Yangtze Memory Technologies Co Ltd.

    The CAC did not detail what risks it had found nor what Micron products this would impact.

    Micron derives around 10 per cent of its revenue from China, but it is not clear if the decision affects the company’s sales to non-Chinese customers in the country.

    The larger chunk of the company’s products flowing into China are being purchased by non-Chinese firms for use in products manufactured in the country, according to analysts.