US Chip Maker Micron Under Fire from China Over Cybersecurity Concerns Amid Escalating Tech Tensions
China has launched a cybersecurity probe into US chip maker Micron Technology, amid escalating tensions between Beijing and Washington over tech exports. The move comes as US allies in Asia and Europe announce new restrictions on the sale of key technology to China.
The Cyberspace Administration of China (CAC) will review products sold by Micron in the country, according to a statement late Friday. The probe is aimed at ensuring the security of key information infrastructure supply chains, preventing cybersecurity risks caused by hidden product problems, and maintaining national security.
The development comes on the same day that Japan, a US ally, said it would restrict the export of advanced chip manufacturing equipment to countries including China, following similar moves by the United States and the Netherlands. These curbs strike at the heart of Beijing's bid to become a tech superpower.
Shares in Micron sank 4.4% on Wall Street Friday following the news, the biggest drop in more than three months. On Monday, they closed another 1.2% lower. Micron derives more than 10% of its revenue from China.
The Idaho-based company had warned of such risks earlier this month, stating that "the Chinese government may restrict us from participating in the China market or may prevent us from competing effectively with Chinese companies."
China has strongly criticized restrictions on tech exports, saying last month it "firmly opposes" such measures. Beijing is seeking to woo foreign investments as it grapples with mounting economic challenges.
However, the country has also exerted growing pressure on foreign companies to bring them into line with its agenda. Last month, authorities closed the Beijing office of Mintz Group, a US corporate intelligence firm, and detained five local staff.
The probe into Micron is part of a broader push by China to assert its dominance in the global tech industry. The move has sent shockwaves through the industry, with many investors and analysts scrambling to assess the implications for Micron's business and the broader global economy.
China has launched a cybersecurity probe into US chip maker Micron Technology, amid escalating tensions between Beijing and Washington over tech exports. The move comes as US allies in Asia and Europe announce new restrictions on the sale of key technology to China.
The Cyberspace Administration of China (CAC) will review products sold by Micron in the country, according to a statement late Friday. The probe is aimed at ensuring the security of key information infrastructure supply chains, preventing cybersecurity risks caused by hidden product problems, and maintaining national security.
The development comes on the same day that Japan, a US ally, said it would restrict the export of advanced chip manufacturing equipment to countries including China, following similar moves by the United States and the Netherlands. These curbs strike at the heart of Beijing's bid to become a tech superpower.
Shares in Micron sank 4.4% on Wall Street Friday following the news, the biggest drop in more than three months. On Monday, they closed another 1.2% lower. Micron derives more than 10% of its revenue from China.
The Idaho-based company had warned of such risks earlier this month, stating that "the Chinese government may restrict us from participating in the China market or may prevent us from competing effectively with Chinese companies."
China has strongly criticized restrictions on tech exports, saying last month it "firmly opposes" such measures. Beijing is seeking to woo foreign investments as it grapples with mounting economic challenges.
However, the country has also exerted growing pressure on foreign companies to bring them into line with its agenda. Last month, authorities closed the Beijing office of Mintz Group, a US corporate intelligence firm, and detained five local staff.
The probe into Micron is part of a broader push by China to assert its dominance in the global tech industry. The move has sent shockwaves through the industry, with many investors and analysts scrambling to assess the implications for Micron's business and the broader global economy.
...i mean, yeah, it's understandable they want to protect their info infrastructure but 4.4% drop on wall street? that's crazy 
...and micron does have a big chunk of its revenue coming from china...but at the same time, us companies have been saying "hey china, we're not sure about your intentions" 
...anyway, it'll be interesting to see how this whole thing plays out 
...do you guys think micron's shares will bounce back or stay down? 
, this is getting crazy! I mean, can't we all just get along? China's cracking down on US chip makers and it's like a tech Cold War brewing... interesting 
, how will this affect the global economy? We're talking about chip manufacturing equipment now - that's like, the backbone of modern tech. What's next? 
. I mean, if they're really that concerned about cybersecurity, why not start with their own domestic companies? 
. Mark my words, this is all going to come back to haunt them 
.
. I mean, they're like, totally reliant on Chinese revenue or something? So if this probe leads to restrictions on their exports, that could be disastrous for them. And who knows, maybe it'll even affect other companies that rely on them too?
that's a big chunk. And now they're getting hit by a Chinese probe over cybersecurity concerns 
that's crazy. Japan's also getting in on the action with its own restrictions 
it's like a big game of technological poker, who's gonna blink first? 
. I mean, we are basically selling them all our tech secrets... it's a no brainer that they'd try to control what we put out there. But at the same time, can't say i'm thrilled about how US allies in asia and europe are joining forces to restrict china's tech exports too 
. It feels like a game of cat and mouse, but who knows which way it'll swing? I just hope Micron can navigate this mess without taking too much damage 
hows that gonna affect the chip market? 
its like they said it all already back in december "the chinese government may restrict us" 
but who listens 
and Micron is like the only major player still operating in the market 
the fact that china is launching a probe into their products is like, totally unreasonable 
has anyone else been following this story? 
Those 4.4% stock drops are going to be bad for investors. Not to mention the ripple effects on the global economy - it's like a domino effect. We need to keep an eye on this situation and hope that some sense will prevail, but I'm not holding my breath 
... china is launching a probe on them over cybersecurity concerns 
i'm not surprised though, china's been trying to get its foot in the door for ages 
and with all these tensions between us & china, it was only a matter of time before something like this happened 
anyway, gotta keep an eye on this one... could be interesting to see how micron bounces back from this