Under a new order from the Cyberspace Authority of China (CAC), Micron, which makes solid-state drives, RAM, video memory and various chips, is prohibited from selling them to companies in China. They are said to pose a “significant safety hazard” and will need to be re-evaluated in order to return to marketing their products domestically. According to information compiled by Reuters, these problems affect the country’s data infrastructure, including state-owned banks, as well as telecom operators.

The Wall Street Journal also notes that this ban only applies to Chinese companies and does not apply to other market segments. For example, if there is a Samsung factory, they can continue to do business without the slightest possible repercussions.

The move was initiated in March when the Chinese government demanded that the CAC consider bringing Micron’s chips into the country’s market, in what sounded like retaliation for the various global sanctions they’ve been subjected to from 2020 until recent months. ASML, for example, could no longer export its lithographic machines to TSMC, as Nikon and Tokyo Electron could.

Micron himself has already spoken out, stating that he will speak with the authorities to talk about what happened. “We are evaluating this finding and reflecting on our next steps. We will continue our efforts to hold a debate with the Chinese authorities.” Currently, 10% of his income comes directly from the Eastern market, and this will significantly affect the profit.

China strikes back

The market sees this action as China’s counterattack on everything they’ve been accused of recently, and Micron is just an “easy target” for them to get their message across. Given that manufacturers have the option to go back to SK Hynix, this will not stop their production from moving forward if the ban is in place for the next few months.

The political climate between the countries is becoming increasingly tense, with a proposed invasion of Taiwan planned, as well as a threat from the United States to attack the TSMC plant if that happens. Meetings on this topic were held as part of the G7 summit, but their decisions have not yet been made public.

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Source: Engadget, Android Management.

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