May 29, 2024

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China prohibits major chip manufacturer Micron from participating in important infrastructure projects

China claims that “US memory chip manufacturer” Micron Technology’s products pose a threat to national security.

On Sunday, the “nation’s cyberspace regulator” declared that the nation’s top memory chip manufacturer presents “serious network security risks.” It denotes a ban on the company’s goods for use in significant infrastructure initiatives in the second-largest economy on Earth.

With rising tension between China and the United States, this is China’s first “significant action” against a “US chip manufacturer.” The declaration is the most recent phase in a dispute between China and  the United States that is escalating over technology that is vital to businesses throughout the globe.

As a result of the protracted dispute, the United States has taken a number of steps to restrict China’s chip manufacturing industry and invested millions of dollars to distend the semiconductor industry in the United States.

The “Cyberspace Administration of China (CAC)” issued a statement in which it stated: “The review found that Micron’s items have serious network safety threats, which pose significant dangers to China’s vital IT supply chain, thereby affecting China’s safety and security.”

No specifics were provided regarding the risks the CAC claimed to have discovered and the specific Micron products where they were discovered.

According to a spokesperson for Micron, the business “received the CAC’s notice following its review of Micron products sold in China.”

The CAC made its announcement a day after a joint statement from the G7 leaders’ meeting in Japan, which criticized China for its use of “economic coercion,” among other things.

The President of the United States, Joe Biden, stated that the “G-7 countries wanted to de-risk and diversify our relationship with China.” He continued, “That means taking measures to diversify our supply chains.

Sanjay Mehrotra, the CEO of Micron, was among a group of business executives who went to the summit in Hiroshima. Last week, the company announced that it would spend about 500 billion yen on technology development in Japan.