The Chinese move will leave Micron Technology with a significant hit as about 10 percent of its revenues come from mainland China.
China banned companies from buying products from leading American memory chip manufacturer Micron Technology, escalating the high-stakes chip war the two countries are engaged in.
The ban on Micron was announced after China’s Cyberspace Administration carried out a review of the products of the US manufacturer. China said high-end chips manufactured by Micron pose cyber security risks. The Chinese regulator ordered operators involved in domestic critical information infrastructure projects not to purchase Micron chips. .
Interestingly, the Chinese move came just a day after US President Joe Biden said Washington and its G-7 allies were committed to ‘de-risking’ the relationship with China. The G-7 meeting slapped tough new sanctions on Russia but softened its tone on China. Biden had specifically said the US was looking to ‘diversify’ its relationship with China. “That means taking steps to diversify our supply chains,” he said.
However, the latest Chinese move flies in the face of any such effort.
