Micron Technology Faces Chinese Investigation Over Cybersecurity Concerns Amid Rising Tech Tensions
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In recent news, China has launched a cybersecurity probe into Micron Technology, one of America’s largest memory chip makers. This move by China appears to be in retaliation after US allies in Asia and Europe announced new restrictions on the sale of key technology to Beijing.
The Cyberspace Administration of China (CAC) will be reviewing products sold by Micron in the country. The purpose of this review is to ensure the security of key information infrastructure supply chains, prevent cybersecurity risks caused by hidden product problems, and maintain national security.
The timing of China’s probe coincides with Japan’s announcement that it will restrict the export of advanced chip manufacturing equipment to countries including China. These actions by the United States, Netherlands, and now Japan, are part of a larger effort to curtail China’s semiconductor industry, which is crucial to Beijing’s goal of becoming a tech superpower.
In response to the cybersecurity probe, Micron has stated that it is aware of the review and is fully cooperating with the CAC. It also affirms the security of its products and reassures customers that its operations are running as usual.
However, news of the probe has impacted Micron’s stock, with shares sinking 4.4% on Wall Street and closing another 1.2% lower. This decline in stock value reflects concerns over the potential implications of the probe on Micron’s business in China, as the company generates more than 10% of its revenue from the country.
Micron had previously warned of risks related to the Chinese government’s restrictions. The company stated that the Chinese government may restrict its participation in the China market or hinder its ability to compete effectively with Chinese companies.
China has consistently criticized restrictions on tech exports, stating that it firmly opposes such measures. However, Beijing has also been increasing pressure on foreign companies to align with its agenda. In recent months, the Chinese government has taken action against companies such as Mintz Group and Deloitte for alleged violations.
Despite these challenges, China is actively encouraging foreign investments to stimulate growth and job creation. The government has assured global CEOs of a good environment and services. However, it is important for foreign companies to understand and navigate the changing landscape and adhere to China’s regulations.
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