Micron Chip Banned in China, Will Threaten the Global Technology Supply Chain How will it affect the future?

AYOTEKNO.ID – China has banned the sale of products made by US-based memory chip company Micron Technology, citing cybersecurity risks and consequent national security concerns.

The move was seen as retaliation for tougher chip export restrictions imposed by Washington.

This ban will take effect immediately, essentially cutting off a market that represents approximately 11% of Micron’s total revenue in 2022, or US$30.8 billion.

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The Cybersecurity Review Office, part of the China Cyberspace Administration, stated that Micron failed to pass its cybersecurity review, which resulted in this ban.

However, the specifics of the review process, the products involved, and the identified security risks were not disclosed. This decision was taken 50 days after the start of the investigation into Micron’s products for reasons of national security.

CIIO regulations in China are broad, covering a wide range of sectors deemed important to national security and people’s livelihoods, including communications and information services, energy, transportation, water resources, and finance.

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Following the ban, the sale of Micron products including DRAM, NAND flash memory and solid state drives to entities in this sector is prohibited.

Micron’s major customers in China, including Lenovo, Xiaomi, Inspur Electronics Information, ZTE, Coolpad, China Electronics Corp and Oppo will be directly affected by this decision.

The US Department of Commerce has criticized China’s decision, stating that it is against restrictions that have no basis in fact.

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The statement also signaled an intention to engage directly with Chinese authorities and other key allies to address the disruption these actions have caused to the memory chip market.

Micron, the fourth largest semiconductor company in the world, was hit hard by this unexpected decision. The company said it was evaluating its next steps and looked forward to continuing discussions with Chinese authorities.

Betty Wu Mingxia, the new general manager of Micron China, has affirmed the company’s commitment to the local technology ecosystem in China, underscoring the country’s important role in its global operations and technology leadership in DRAM production.