Chinese authorities banned the use of American chipmaker Micron’s products in key infrastructure projects Sunday, claiming the chips failed to pass a security review, marking the latest salvo in the ongoing geopolitical tussle between Beijing and Washington over access to advanced semiconductors.
The Micron logo is pictured in Hangzhou, Zhejiang province, China.
The move was announced by the Cyberspace Administration of China, which said it came to the decision after conducting a “network security review” of Micron products sold in China.
The agency claimed its review found “serious network security issues” with Micron’s products, which could pose a major security risk to China’s “critical information infrastructure supply chain” and affect national security.
The regulator has ordered “operators of critical information infrastructure” in the country to stop purchasing Micron products, but it is unclear how it plans to handle existing equipment that uses Micron chips.
Micron told the Wall Street Journal it is “evaluating” the decision and is looking “forward to continuing to engage in discussions with Chinese authorities.”
$3.3 billion. That is the total amount of revenue that Micron generated in China in 2022, according to its earnings report. That accounts for nearly 11% of Micron’s total revenue for the year of $30.75 billion, making China the company’s third largest market after the U.S. and Taiwan.