In April, the Chinese government launched an investigation into American chip manufacturer Micron for potential “cybersecurity risks.” This decision is seen as a reaction to the U.S.’s sanctions on China memory chip maker Yangtze Memory Technologies Corporation last year. The ongoing U.S.-China economic competition has drastically shifted the global technology supply chain in both countries.
The Cyberspace Administration of China recently informed domestic companies providing “key information infrastructure” services to stop buying Micron products due to the “serious cybersecurity issues” it presents. Such infrastructure includes companies involved in the telecommunications, energy, transportation, finance, defense, and other areas of national interest. This directive did not stipulate how exactly Micron presents a risk, but did reference the 2016 Cybersecurity Law that imposed mandatory real name verification and storing of user data on local servers.
Founded 16 years ago, Micron specializes in the production of computer memory and data storage such as DRAM and flash memory. China is the company’s third-largest market, contributing 10.7% to its annual revenue in 2022. The ban could benefit competitors like South Korean firms Samsung Electronics and SK Hynix. The US has urged South Korea to not fill China’s market gap should Micron be withheld.
The U.S. Department of Commerce is now working with Chinese authorities to comprehensively address the memory chip market distortions caused by China’s actions. In recent years, China has been striving to build its own technological self-sufficiency in areas like advanced semiconductors, which are traditionally reliant on foreign suppliers. Chinese government initiatives involve fully substituting foreign hardware and software for homegrown alternatives across state-owned enterprises.
Micron is a publicly traded, multinational semiconductor company with its headquarters in Idaho, USA. Founded in 1978, it is now the world’s third-largest supplier of dynamic random access memory (DRAM), and fourth-largest producer of NAND flash memory. Its operations span throughout the Americas, Europe, Middle East, Africa, Asia and Australia.
Steve Appleton was the CEO of Micron for 20 years, until his death in February 2012. He was a lifelong entrepreneur and innovator, taking the company from a memory chip maker in Boise, Idaho, to a global semiconductor powerhouse. He is credited with redefining the company’s culture, driving new technologies, and leading Micron’s expansion around the world.
