China has banned domestic purchases of Micron Technology's memory chips due to alleged network security risks, which is expected to negatively impact the U.S. chipmaker's revenue. The move comes as the U.S., Europe, and Japan have been restricting Chinese access to advanced chipmaking technology due to concerns about its potential use in weapons and more. - China's cyberspace regulator claims Micron failed its network security review that began earlier this year.
- As a result, Beijing is now blocking Chinese infrastructure operators from purchasing Micron products.
- China accounts for about 10% of the annual sales of Micron.
- The largest U.S. memory chipmaker is now the first in the country to face such limitations in what is viewed as retaliation for U.S. efforts to restrict China's access to critical technology.
- Meanwhile, the U.S. Commerce Department opposes the restrictions, stating they lack factual basis and go against China's claims of openness and transparent regulation.
- The ban could also cause other companies to halt purchases and remove Micron from their supply chains due to the political risks.
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