Newsletter
It’s no secret that this ongoing trade war between the United States and China has hindered many companies from conducting business. Now, the Cyberspace Administration of China (CAC) has imposed a ban on Chinese companies from purchasing chips from Micron, citing national security concerns. This move comes after the Chinese government launched a cybersecurity probe into the American memory chip giant and found that its products posed significant security risks to critical Chinese information infrastructure, including state-owned banks and telecom operators.
However, according to industry experts, this move comes as a retaliatory measure in response to actions taken by the United States against Chinese companies. These include the recent decision by the Biden administration to stop granting licenses that allowed American companies to export to Huawei, as well as the restrictions imposed on Nvidia, preventing the company from exporting its advanced GPU, known as H100, for generative AI training to China.
China’s efforts to become self-reliant
While the CAC claims that Micron’s products pose significant cybersecurity risks to the country’s information supply chain, specific details about these risks have not been disclosed by the government. Additionally, it’s worth noting that Micron had already acknowledged the challenges in China and the increased competition resulting from substantial investments made by the Chinese government in companies like Yangtze Memory Technologies and ChangXin Memory Technologies.
Therefore, this ban could also be a part of China’s efforts to become self-reliant, particularly in critical industries such as advanced semiconductors, where it has traditionally heavily relied on foreign suppliers.
“We are evaluating the conclusion and assessing our next steps. We look forward to continuing to engage in discussions with Chinese authorities,” said Micron.
This latest ban further escalates the ongoing feud over semiconductor technology between the US and China. In response, the US Department of Commerce has expressed its intentions to engage directly with Chinese authorities to communicate the US position. Additionally, the Commerce Department plans to collaborate with allies and partners to address the distortions in China’s memory market.