Tech And Science

China probes an American chip company

China Chip America
Source: Unsplash

In apparent retribution for US allies in Asia and Europe imposing additional limitations on the transfer of crucial technology to Beijing, China has initiated a cybersecurity investigation into Micron Technologies, one of America’s top memory chip producers.

According to CNN, the Cyberspace Administration of China (CAC) would conduct an examination of Micron goods marketed in the country.

The move is aimed at “ensuring the security of key information infrastructure supply chains, preventing cybersecurity risks caused by hidden product problems, and maintaining national security”, it noted.

It came on the same day that Japan, a US ally, announced restrictions on the sale of advanced chip manufacturing equipment to nations such as China, after similar actions by the United States and the Netherlands.

According to CNN, America and its allies have placed restrictions on China’s semiconductor sector, which strike at the heart of Beijing’s drive to become a tech giant.

The Netherlands also announced additional limitations on foreign sales of semiconductor technology last month, citing the need to defend national security.

The United States prohibited Chinese corporations from purchasing sophisticated semiconductors and chipmaking equipment without a licence in October.

After the announcement, Micron shares fell 4.4% on Wall Street on March 31, the largest decline in more than three months.

According to CNN, China accounts for more than 10% of Micron’s revenue.

The Idaho-based corporation has previously warned of similar hazards in a filing.

“The Chinese government may restrict us from participating in the China market or may prevent us from competing effectively with Chinese companies,” it said last week.