🥇 First rule of investing? Know when to save! Up to 55% off InvestingPro before BLACK FRIDAYCLAIM SALE

US-China tech war intensifies - Micron Technology faces Chinese ban on chip sales

Published 22/05/2023, 02:34 pm
© Reuters.  US-China tech war intensifies - Micron Technology faces Chinese ban on chip sales
FCHI
-
MU
-
005930
-

China's cybersecurity regulator, the Cyberspace Administration of China (CAC), has imposed a ban on Chinese firms purchasing chips from Micron Technology (NASDAQ:MU), a US memory manufacturer.

The CAC claims that Micron's products pose "significant network security risks" to critical Chinese information infrastructure, including state-owned banks and telecom operators.

This ban is widely perceived as a retaliatory measure in response to the sanctions imposed by the US on Chinese chipmakers.

In October, Washington issued a comprehensive order that restricted US companies from supplying semiconductor chips, chipmaking devices and updates for previous sales to Chinese companies.

Furthermore, the order-imposed restrictions on American citizens from working for Chinese semiconductor firms.

a 'Tit-for-Tat' move

This ban is the latest development in the ongoing conflict between the US and China concerning semiconductor technology.

The Biden administration has recently taken steps to restrict China's access to advanced chipmaking equipment.

In January, officials from the US, the Netherlands and Japan agreed to tighten export controls on lithography machines produced by ASL, Nikon and Tokyo Electron.

In pursuit of avenues for retaliation against the US, China has targeted Micron as a consequential entity, leveraging alternative suppliers such as South Korea's SK Hynix and Samsung (KS:005930) to fulfil any market void created by a potential ban on Micron Technology's chip sales.

Anticipating this retaliatory move, the US has previously approached South Korea, requesting that it encourage its chipmakers not to fill any market gap in China if Beijing indeed implements a ban on memory chipmaker Micron Technology.

Read more on Proactive Investors AU

Disclaimer

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.