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.
