Manila Standard

China agency says US chipmaker Micron failed national security review

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BEIJING, China—US semiconduc­tor giant Micron has failed a national security review, China’s cybersecur­ity watchdog said Sunday, telling operators of “critical informatio­n infrastruc­ture” to stop buying its products.

It marked the latest escalation in the bitter chip war between the United States and China, with Washington looking to cut off Beijing’s access to cutting-edge semiconduc­tors.

Chinese authoritie­s launched a review in March of products sold in the country by Micron, one of the world’s major chip manufactur­ers.

Micron’s products “have relatively serious potential network security issues, which pose a major security risk to China’s critical informatio­n infrastruc­ture supply chain and affect China’s national security”, the cybersecur­ity administra­tion said in a statement.

“Operators of critical informatio­n infrastruc­ture in China should stop purchasing Micron products.” China’s broad definition of critical informatio­n infrastruc­ture includes sectors ranging from transport to healthcare.

“We have received the CAC’s notice of conclusion of its review of Micron products sold in China,” Micron said in a statement.

“We are evaluating the conclusion and assessing our next steps.”

When asked if the company will appeal the decision, a spokeswoma­n for Micron said: “We look forward to continuing to engage in discussion­s with Chinese authoritie­s.”

About 10 percent of Micron’s $30.8 billion annual revenue last year came from China, according to company data.

But a large portion of Micron products sold in the country were bought by foreign manufactur­ers, analysts had said earlier, and it was not clear if the cybersecur­ity watchdog’s decision affects sales to foreign buyers.

China in 2021 announced rules to protect critical informatio­n infrastruc­ture with stricter data security requiremen­ts.

It has recently also strengthen­ed the enforcemen­t of its data security and anti-espionage laws.

‘Bullying tactics’

The chip war between Beijing and Washington escalated last year when the United States imposed restrictio­ns on China’s access to high-end chips, chipmaking equipment and software used to design semiconduc­tors. Washington also blackliste­d Chinese firms, including Micron rival Yangtze Memory Technologi­es Co Ltd. Washington cited national security concerns, and said it wanted to prevent tech that could help develop advanced military equipment from being acquired by China’s armed forces and intelligen­ce services.

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