Tech Tradewar Revival – China Tells Its Tech Companies to Stop Buying Micron Chips

The Chinese government has announced an immediate ban on the purchase of products manufactured by the renowned U.S. memory chipmaker Micron Technology Inc.

The decision is alleged to be a revived feud between Washington and Beijing over chip technology and could suffuse other sectors, including telecommunication, finance, and transportation.

Micron Technology Inc. Chips Fails China’s Network Security Review: What Could Be Next?

The Cyberspace Administration of China (CAC) recently released a public statement on May 21st announcing an embargo on tech products from one of the United States’ largest memory-chip makers, Micron Technology Inc.

The announcement came as the latest punch in an anticipated feud with the U.S., announcing that Micron Technology Inc.’s recent products have failed to pass required cybersecurity assessments in the country.

China bans imports from American semiconductor manufacturer Micron Technology Inc.

— The Young Fehlingerists φด้ۗۗۗۗۗۗۗۗۗۗۗۗۗۗ (@CyberRuthenia) May 21, 2023

The official statement entails a territorial ban on key infrastructure operators in China from purchasing the tech giant’s products after a recent cybersecurity review discovered potential security risks.

The conducted test revealed Micron’s products caused significant security risks to China’s information infrastructure supply chain and can surge to affect national security on a global scale.

The probe comes some weeks after China publicly announced it was conducting an investigation on the importation of chips into its territory from the tech giant.

Tech enthusiasts believe the two countries are caught at loggerheads as they both look keen to producing innovative infrastructures, hence the recent escalation of an ongoing battle over crucial technology and world power.

The US Threw the First Jab

The United States is believed to have launched the first technological blow over national security when it announced additional export controls for advanced computing and semiconductor manufacturing items.

The ban caused a full cut-off of sophisticated processors. It prevented citizens from trading technological products made in China and restricted citizens from providing help to related industries.

The ban on Micron Technology chip products may officially be geared towards preserving China’s information and national security.

However, it is allegedly part of a broader driving force toward retaliation and a fight for economic power.

As exclusively detailed by a recent Bloomberg report, former FBI counterintelligence, and founder of Trenchcoat Advisors, Holden Triplett, stated that the decision of the CAC on Micron Technology’s products is political and technological retaliation.

He iterated that the report of a failed cybersecurity review is a hoax that shouldn’t be believed by other foreign businesses still operating in China’s territories.

To him, this recent move by the Chinese authorities is purely political, and companies still operating in the region could easily be the next prey.

Amidst the recent ban, this might not end the feud between China and the United States of America.
There’s a brewing belief of an escalation that will spread to several sectors ranging from telecommunications, finance and many more.

Impact of CAC Ban: Stocks and Sales

There’s been no depth detail on potential risks discovered neither was there a released list of what Micron Technology Inc. products would be affected by CAC.

Nonetheless, the current impact of this ban could prove grim for the renowned chipmaker.

Shot heard round the world: China bans Micron

Relevant China revenue is between eleven and twenty-five percent of Micron’s total annual revenue, analysts estimate.https://t.co/jQi4kJhnmg$MU#investing #semiconductors #China pic.twitter.com/tmRHohhIUH

— Tiernan Ray (@TiernanRayTech) May 22, 2023

According to analysts, Micron could easily shed 11% and 25% of its annual revenue due to this sour turn of events with the world’s second-largest economy.
Micron Technology Inc’s stock market sentiment, $MU, proves otherwise, as there are clear signs of a market downtrend propelled by CAC’s public announcement on Sunday.

The $MU stock traded at $68.15 per share in the early hours of today and has declined to a press time price of $65.69.

The 3.55% loss is minimal. However, there are fears that this may be the start of more negative news that will undoubtedly influence the tech giant stock market negatively.

To salvage a massive loss of revenue, Micron Technology Inc may negotiate with China to leverage any opportunity for a short or long-lasting reconciliation.

Related News

• US vs. China Chip War Escalates – Micron Products Subject to Chinese Cybersecurity Review

• Chip Wars – Will ASML China Export Ban Hobble Beijing Ambitions or Accelerate Homegrown Initiatives?