China Bans Micron, Largest U.S. Memory Chip Maker, Citing National Security Risks

China Decides to Ban U.S. Tech Giant, Claiming It Poses a Security Risk with Chip Supply

China officially announced that Micron Technology, the American memory chip giant, will be banned from participating in infrastructure projects in the country, further deepening the tech war between China and the United States. According to a statement from Beijing, released on Sunday, 21, the company’s products pose a “risk to national security,” according to Abril.

The Cyberspace Administration of China (CAC), the agency responsible for regulating China’s cyberspace, stated that a review found serious network security risks in Micron’s chips from the United States, which pose significant threats to China’s information infrastructure supply chain security, thus affecting national security. However, the CAC did not specify the details of the risks found at the U.S. company nor which Micron products are concentrated.

The announcement came a day after a meeting of G7 leaders in Japan, who issued a joint statement criticizing China, including the use of “economic coercion.” This action represents the first major measure taken by China against a chip manufacturer from the United States, but it is only the latest episode in an increasingly intense dispute between Washington and Beijing over technology critical to global economies. The United States has already imposed a series of measures against the Chinese chip industry and is investing billions of dollars to boost its domestic semiconductor sector, thereby reducing dependence on China.

United States Declares It Will Join Partners to Resolve Chip Impasse with China

In response to the action against Micron, the U.S. government declared that it will work with allies to address what it called “market distortions in memory chip caused by actions from China.” A U.S. Department of Commerce spokesperson stated it firmly opposes restrictions that lack factual basis and emphasized that this action, along with recent attacks on other U.S. companies, is inconsistent with China’s claims about opening its markets and its commitment to a transparent regulatory framework.

Following the announcement, Micron’s chip stocks fell 5.3% in pre-market trading in the United States. China is an important market for the company, accounting for about 10% of its annual chip sales. In 2022, Micron reported total revenue of US$ 30.7 billion, with US$ 3.3 billion coming from mainland China in chip purchases.