Micron Know-how: China probes US chip maker for cybersecurity dangers as tech stress escalates
Hong Kong
CNN
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China has launched a cybersecurity probe into Micron Know-how, certainly one of America’s largest reminiscence chip makers, in obvious retaliation after US allies in Asia and Europe introduced new restrictions on the sale of key know-how to Beijing.
The Our on-line world Administration of China (CAC) will evaluate merchandise bought by Micron within the nation, based on a statement by the watchdog late on Friday.
The transfer is aimed toward “guaranteeing the safety of key info infrastructure provide chains, stopping cybersecurity dangers attributable to hidden product issues, and sustaining nationwide safety,” it famous.
It got here on the identical day that Japan, a US ally, mentioned it could prohibit the export of superior chip manufacturing gear to nations together with China, following related strikes by the US and the Netherlands.
Washington and its allies have introduced curbs on China’s semiconductor trade, which strike on the coronary heart of Beijing’s bid to change into a tech superpower.
Final month, the Netherlands additionally unveiled new restrictions on abroad gross sales of semiconductor know-how, citing the necessity to defend nationwide safety. In October, the US banned Chinese language corporations from shopping for superior chips and chipmaking gear with out a license.
Micron instructed CNN it was conscious of the evaluate.
“We’re in communication with the CAC and are cooperating absolutely,” it mentioned, including that it stands by the safety of its merchandise. “Micron’s product shipments, engineering, manufacturing, gross sales and different capabilities are working as regular.”
Shares in Micron sank 4.4% on Wall Avenue Friday following the information, the most important drop in additional than three months. On Monday, they closed one other 1.2% decrease. Micron derives greater than 10% of its income from China.
In an earlier filing, the Idaho-based firm had warned of such dangers.
“The Chinese language authorities might prohibit us from taking part within the China market or might stop us from competing successfully with Chinese language corporations,” it mentioned final week.
China has strongly criticized restrictions on tech exports, saying final month it “firmly opposes” such measures.
In efforts to spice up development and job creation, Beijing is looking for to woo international investments because it grapples with mounting financial challenges. The newly minted premier Li Qiang and several other high financial officers have been rolling out the welcome wagon for world CEOs and promising they’d “present an excellent setting and companies.”
However Beijing has additionally exerted rising stress on international corporations to convey them into line with its agenda.
Final month, authorities closed the Beijing workplace of Mintz Group, a US company intelligence agency, and detained 5 native employees.
Days earlier, they suspended Deloitte’s operations in Beijing for 3 months and imposed a advantageous of $31 million over alleged lapses in its work auditing a state-owned distressed debt supervisor.
