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China has initiated a cybersecurity probe into Micron Technology, a major American memory chip manufacturer, in response to new restrictions imposed on technology sales to Beijing by US allies in Asia and Europe.
The Cyberspace Administration of China (CAC) announced its review of Micron’s products sold in the country, aiming to ensure the security of key information infrastructure supply chains and prevent cybersecurity risks associated with hidden product problems, all in the interest of maintaining national security.
This probe comes as Japan, a US ally, also plans to restrict the export of advanced chip manufacturing equipment to certain countries including China, aligning with actions taken by the US and the Netherlands in targeting China’s semiconductor industry.
Micron responded to the probe, stating it is in communication with the CAC and is fully cooperating, emphasizing the security of its products and reaffirming that its operations are running normally.
The news caused Micron’s shares to drop on Wall Street, highlighting the potential impact on the company, which derives more than 10% of its revenue from China. In a previous filing, Micron had already warned of these risks associated with geopolitical tensions.
China has expressed strong opposition to tech export restrictions, emphasizing its commitment to creating a favorable environment for foreign investments, despite recent actions against foreign companies in Beijing.
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