What happened: Micron Technology Inc. products were declared to have failed a cybersecurity assessment in China. Due to "relatively serious" cybersecurity threats discovered in Micron's devices, Beijing banned purchasing its products for crucial infrastructure projects. Why it matters: The semiconductor industry has evolved into a national security struggle between the U.S. and China. This action intensifies the ongoing technological conflict between the two biggest economies. In 2022, Micron generated $3.3B in revenue from mainland China, accounting for 10% of the company's overall $30.7B revenue, and has manufacturing facilities in China. Where to see the impact: Samsung Electronics and SK Hynix, two of Micron's principal rivals, both enjoyed share price increases in Seoul. At the same time, Chinese chip companies like SMIC and Hua Hong Semiconductor rose in Hong Kong. The prohibition may impact other U.S. chipmakers exposed to the Chinese market, including Qualcomm, Broadcom, and Intel. The effect is anticipated to have a minimal impact on Micron, though. |
