London Daily

Focus on the big picture.
Saturday, Feb 22, 2025

China bans chipmaker Micron from key infrastructure projects as tech row with US escalates

China bans chipmaker Micron from key infrastructure projects as tech row with US escalates

The announcement from China comes after the G7 summit in Japan over the weekend, where US President Joe Biden said the group's leaders had agreed to "de-risk and diversify our relationship with China".
Beijing has stepped up its feud with Washington after announcing products made by US memory chip giant Micron Technology pose a national security risk.

China's cyberspace regulator said on Sunday that following a review it found Micron products have unspecified "serious network security risks" that are a hazard to the country's information infrastructure.

It told users of computer equipment to stop buying products from the US company.

"The review found that Micron's products have serious network security risks, which pose significant security risks to China's critical information infrastructure supply chain, affecting China's national security," the Cyberspace Administration of China said on its website.

CAC's statement did not provide further details of the risk or which Micron products were deemed a threat.

Micron said it had received the CAC's notice of the conclusion of its review of the company's products sold in China, and looked "forward to continuing to engage in discussions with Chinese authorities".

The US, Europe and Japan are reducing China's access to advanced chipmaking and other technology they believe could be used in weapons.

While they have warned of unspecified consequences, Chinese officials appear to be struggling to find ways to retaliate without hurting the country's own smartphone producers and other industries.

Micron makes DRAM and NAND flash memory chips and competes with South Korea's Samsung Electronics Co Ltd and SK Hynix Inc, as well as Japan's Kioxia, a unit of Toshiba Corp.

Impact on Micron will be 'limited'

The company would experience limited impact by the latest announcement, according to Jefferies analysts, as its major customers in China are consumer electronics firms such as smartphone and computer manufacturers, not infrastructure suppliers.

"Since Micron's DRAM and NAND products are much less in servers, we believe most of its revenue in China is not generated from telcos and the government. Therefore, the ultimate impact on Micron will be quite limited," they said.

However, the company generated $5.2bn (£4.1bn) of revenue from China and Hong Kong last year, around 16% of its total revenue.

An official review of Micron under China's increasingly stringent information security laws was announced last month, hours after Japan joined Washington in imposing restrictions on Chinese access to technology to make processor chips on security grounds.

Last week, Micron announced a plan to invest up to 500 billion yen (£2.9bn) in Japan in extreme ultraviolet technology, becoming the first chipmaker to bring advanced chip manufacturing technology to the country that is now seeking to reinvigorate its chip sector.

The timing of the CAC's announcement was significant, as US President Joe Biden said on Sunday that G7 nations had agreed to "de-risk and diversify our relationship with China". They also agreed to establish an initiative to counter economic "coercion" during the summit in Hiroshima, Japan, over the weekend.

Meanwhile, British Prime Minister Rishi Sunak said in his address at the summit that China poses the biggest challenge in the world to global security.

He said China was the "only country with both the means and intent to reshape the world order".
Newsletter

Related Articles

0:00
0:00
Close
Good News: Senate Confirms Kash Patel as FBI Director
Officials from the U.S. and Hungary Engage in Talks on Economic Collaboration and Sanctions Strategy
James Bond Franchise Transitions to Amazon MGM Studios
Technology Giants Ramp Up Lobbying Initiatives Against Strict EU Regulations
Alibaba Exceeds Quarterly Projections Fueled by Growth in Cloud and AI
Tequila Sector Faces Surplus Crisis as Agave Prices Dive Sharply
Residents of Flintshire Mobile Home Park Grapple with Maintenance Issues and Uncertain Future
Ronan Keating Criticizes Irish Justice System Following Fatal Crash Involving His Brother
Gordon Ramsay's Lucky Cat Restaurant Faces Unprecedented Theft
Israeli Family Mourns Loss of Peace Advocate Oded Lifschitz as Body Returned from Gaza
Former UK Defense Chief Calls for Enhanced European Support for Ukraine
Pope Francis Admitted to Hospital in Rome Amid Rising Succession Speculation
Senate Republican Leader Mitch McConnell, at the age of 83, Declares His Retirement.
Whistleblower Reveals Whitehall’s Focus on Kabul Animal Airlift Amid Crisis
Politicians Who Deliberately Lie Could Face Removal from Office in Wales
Scottish Labour Faces Challenges Ahead of 2026 Holyrood Elections
Leftwing Activists Less Likely to Work with Political Rivals, Study Finds
Boris Johnson to Host 'An Evening with Boris Johnson' at Edinburgh's Usher Hall
Planned Change in British Citizenship Rules Faces First Legal Challenge
Northumberland Postal Worker Sentenced for Sexual Assaults During Deliveries
British Journalist Missing in Brazil for 11 Days
Tesco Fixes Website Glitch That Disrupted Online Grocery Orders
Amnesty International Critiques UK's Predictive Policing Practices
Burglar Jailed After Falling into Home-Made Trap in Blyth
Sellafield Nuclear Site Exits Special Measures for Physical Security Amid Ongoing Cybersecurity Concerns
Avian Influenza Impact on Seals in Norfolk: Four Deaths Confirmed
First Arrest Under Scotland's Abortion Clinic Buffer Zone Law Amidst International Controversy
Meghan Markle Rebrands Lifestyle Venture as 'As Ever' Ahead of Netflix Series Launch
Inter-Island Ferry Services Between Guernsey and Jersey Set to Expand
Significant Proportion of Cancer Patients in England and Wales Not Receiving Recommended Treatments
Final Consultation Launched for Vyrnwy Frankton Power Line Project
Drug Misuse Deaths in Scotland Rise by 12% in 2023
Failed £100 Million Cocaine Smuggling Operation in the Scottish Highlands
Central Cee Equals MOBO Awards Record; Bashy and Ayra Starr Among Top Honorees
EastEnders: Four Decades of Challenging Social Norms
Jonathan Bailey Channels 'Succession' in Bold Richard II Performance
Northern Ireland's First Astronaut Engages in Rigorous Spacewalk Training
Former Postman Sentenced for Series of Sexual Offences in Northumberland
Record Surge in Anti-Muslim Hate Crimes Across the UK in 2024
Omagh Bombing Inquiry Concludes Commemorative Hearings with Survivor Testimonies
UK Government Introduces 'Ronan's Law' to Combat Online Knife Sales to Minors
Metal Detectorists Unearth 15th-Century Coin Hoard in Scottish Borders
Woman Charged in 1978 Death of Five-Year-Old Girl in South London
Expanding Sinkhole in Godstone, Surrey, Forces Evacuations and Road Closures
Bangor University Announces Plans to Cut 200 Jobs Amid £15 Million Savings Target
British Journalist Charlotte Peet Reported Missing in Brazil
UK Inflation Rises to 3% in January Amid Higher Food Prices and School Fees
Starmer Defends Zelensky Amidst Trump's 'Dictator' Allegation
Zelensky Calls on World Leaders to Back Peace Efforts in Light of Strains with Trump
UK Prime minister, Mr. Keir Starmer, has stated that any peace agreement aimed at ending the conflict in Ukraine "MUST" include a US security guarantee to deter Russian aggression
×