China Launches Cybersecurity Investigation Into Micron Technology Amid Rising Tech Tensions

Our awesome company provides complete software development activities utilizing nearshore and offshore resources, including mobile app development, technology maintenance, web server development, and many other technology development activities. China has initiated a cybersecurity investigation into Micron Technology, a prominent American memory chip maker, in potential retaliation after US allies in Asia and Europe implemented new restrictions on the sale of crucial technology to Beijing.

The Cyberspace Administration of China (CAC) announced a review of Micron’s products sold in the country, emphasizing the importance of safeguarding key information infrastructure supply chains and national security by preventing cybersecurity risks from hidden product issues.

This move coincided with Japan, a US ally, announcing limitations on the export of advanced chip manufacturing equipment to various countries, including China, following similar actions taken by the United States and the Netherlands. Washington and its allies have imposed restrictions on China’s semiconductor industry, impacting Beijing’s ambitions to establish itself as a tech powerhouse.

Micron acknowledged the review by CAC and stated that it is cooperating fully, emphasizing the security of its products. However, the news caused Micron’s shares to drop by 4.4% on Wall Street, marking the largest decrease in over three months, and continued to decline by 1.2% on Monday. Being dependent on China for more than 10% of its revenue, Micron had previously cautioned about such risks in a filing.

China has pushed back against tech export restrictions, expressing firm opposition towards such measures. While aiming to attract foreign investments for economic growth and job opportunities, Beijing has also increased pressure on foreign companies to align with its agenda, as seen through recent actions taken against firms like Mintz Group and Deloitte in Beijing.