Micron Technology Inc. got under the Chinese ban: “We don’t need your chips”
Beijing has banned the use of Micron Technology Inc. products. in the area of critical information infrastructure, citing national security risks.
China has banned the use of products from US chip maker Micron Technology Inc. due to “serious risks to network security.” This was announced on Sunday by the Cyberspace Administration of China on its website.
According to Chinese authorities, Micron’s products pose a threat to China’s information infrastructure and affect national security. Details are not specified.
“Critical information infrastructure operators in China should stop purchasing Micron products,” the statement said.
The move is part of an escalating conflict between Beijing and Washington over technology and security issues. The United States, Europe and Japan are restricting China’s access to advanced technology for the production of processor chips, which, in their opinion, can be used for military purposes. The escalation comes amid China’s threats to attack Taiwan and increased aggression towards Japan and other neighbors.
Chinese officials have warned of uncertain consequences but appear to be having difficulty finding ways to respond without hurting Chinese smartphone makers and other industries, as well as developing their own suppliers of processor chips.
The official review of Micron’s products to comply with China’s tightened information security laws was announced on April 4, hours after Japan joined the US in imposing restrictions on China’s access to processor chip technology for security reasons.
Foreign companies have been shocked by police raids on two consulting firms, Bain & Co. and Capvision, and due diligence firm Mintz Group. Chinese authorities declined to explain why the raids took place, but said foreign companies were required to comply with the law.
Business groups and the US government have urged authorities to explain the expanded new legal restrictions on information and how they will be enforced.
Sunday’s statement tried to reassure foreign companies.
“China firmly promotes openness to the outside world and welcomes the entry into the Chinese market of enterprises and various platform products and services from different countries, as long as they comply with Chinese laws and regulations,” the Cyberspace Authority said in a statement.
Chinese President Xi Jinping accused Washington in March of trying to block China’s development. He urged the public to “dare to fight”.
Despite this, Beijing has been slow to respond, perhaps to avoid disrupting Chinese factories that assemble most of the world’s smartphones, tablet computers and other consumer electronics. They import more than 300 billion dollars of foreign chips annually.
Beijing is allocating billions of dollars in an effort to speed up chip development and reduce reliance on foreign technology. Chinese factories can supply low-end chips used in cars and home appliances, but cannot support smartphones, artificial intelligence, and other advanced applications.
US-China relations are at their lowest point in decades due to security disputes, Beijing’s treatment of Hong Kong and Muslim ethnic minorities, territorial disputes, and China’s multibillion-dollar trade surplus.
The measure appears to be a reaction to the US decision to impose restrictions on the sale of American technology to Chinese companies. In addition, China is seeking to increase its use of domestic electronics and reduce dependence on foreign suppliers, especially for technologies deemed critical to national security.
At the same time, some experts believe that China’s decision could have far-reaching consequences. Micron Technology Inc. is a leading manufacturer of Dynamic Random Access Memory (DRAM) and NAND flash memory, widely used in devices ranging from smartphones to servers. If Chinese companies are unable to source these components from Micron, they may face serious problems in maintaining the production of their products.
However, some analysts believe the Chinese ban may have little effect on Micron as the company may focus on other markets such as the US and Europe, which also have strong demand for semiconductor products.