Micron Technology: China probes US chip maker for cybersecurity risks as tech tension escalates
Micron Technology: China probes US chip maker for cybersecurity risks as tech tension escalates
Shares of Micron Technology plummeted on Wall Street following news of a cybersecurity investigation initiated by China. The Cyberspace Administration of China (CAC) is examining products sold by the company within the country, as stated in a recent announcement. This probe comes amid heightened global tech tensions, spurred by restrictions imposed on China by US allies.
Global Tech Curbs and China’s Response
China’s move follows actions by Japan, the United States, and the Netherlands to limit advanced chipmaking technology exports. These measures target China’s semiconductor industry, which is central to its goal of becoming a tech superpower. The CAC emphasized its focus on securing information infrastructure supply chains and mitigating risks to national security.
“We are in communication with the CAC and are cooperating fully,” Micron stated. “Micron’s product shipments, engineering, manufacturing, sales, and other functions are operating as normal.”
Japan, a US ally, announced restrictions on advanced chip equipment exports to China on the same day. This follows the US’s October ban on Chinese companies purchasing advanced chips and chipmaking equipment without a license, as well as the Netherlands’ recent export controls. China has condemned these measures, calling them “firmly opposed” in a statement last month.
Micron, which generates over 10% of its revenue from China, had previously warned of potential risks. In a prior filing, the Idaho-based firm noted, “The Chinese government may restrict us from participating in the China market or may prevent us from competing effectively with Chinese companies.”
Pressure on Foreign Firms
Beijing’s economic strategy includes attracting foreign investment to counteract challenges. Premier Li Qiang and top officials have offered support to global CEOs, pledging to create favorable conditions. However, the government has also intensified pressure on international firms, such as Mintz Group and Deloitte, through actions like closing Mintz’s Beijing office and suspending Deloitte’s operations for three months.
These measures reflect broader efforts to align foreign entities with China’s tech policies. The CAC’s investigation into Micron underscores the growing scrutiny of US-based companies operating in the country. While Micron’s stock fell 4.4% on Friday, it dropped an additional 1.2% by Monday, marking the largest decline in over three months.
CNN’s Michelle Toh, Junko Ogura, Sandi Sidhu, and Chris Lau contributed to this report.
