The US memory chipmaker Micron Technology Inc (MU.O) will have its goods marketed in China subject to a cybersecurity evaluation, the regulator announced on Friday.
According to a brief explanation from the Cyberspace Administration of China (CAC), the action, which coincides with a dispute between Washington and Beijing over chip technology, aims to safeguard critical information infrastructure supply chain security, prevent hidden risks, and guarantee national security.
There were no other information, such as the Micron goods that would be examined.
Micron said it was aware of the announcement and “is in discussion with the CAC and is fully cooperating” in a statement to Reuters. It further stated that it stands behind the security of its products and client agreements.
A number of China’s largest chip companies, including rival Micron Yangtze Memory Technologies Co Ltd., have been placed on a blacklist by the US due to export restrictions placed on chipmaking technology due to concerns that the Chinese military might use it to produce chips for applications like artificial intelligence.
One of the biggest memory chip manufacturers in the world, Micron, did not respond to a request for comment almost away. The stock of the corporation decreased 3% on Friday to $61.15.
According to Matthew Bryson, an analyst at Wedbush Securities, “Punitive action against Micron may imply a wider shift in Chinese policy, as other American manufacturers with a substantial China presence may now face similar action.”
Japan declared on Friday that it would modify its technology trade restrictions in response to US pressure to limit China’s capacity to produce advanced processors. A similar declaration was made earlier this month by the Netherlands, a country that produces advanced lithography machinery that is essential for the production of advanced semiconductors.
The memory chip business, which is dominated by Samsung Electronics of South Korea, has been shaken by weak consumer demand (005930.KS).
