Beijing bans Chinese companies from using Micron chips in critical infrastructure

China’s cybersecurity regulator has banned Chinese firms from buying chips from US memory maker Micron Technology. , the Cyberspace Administration of China (CAC) said on Sunday that it found the company’s products pose “significant security risks” to critical Chinese information infrastructure, including state-owned banks and telecom operators. The ban comes after China announced a review of Micron imports in late March in a move seen at the time as retaliation for sanctions Washington has imposed on Chinese chip makers in recent years.

Idaho-based Micron is the largest memory manufacturer in the United States. The Chinese market accounts for about 1[ads1]0 percent of the firm’s annual revenue, although the majority of companies that import Micron products into China are manufacturers that make devices for sale in other parts of the world. In accordance The Wall Street Journal, the CAC’s ban does not apply to non-Chinese firms in China. “We are evaluating the conclusion and considering our next steps,” Micron. “We look forward to continuing to engage in discussions with the Chinese authorities.” The CAC did not say which Micron products would be affected by the ban, nor did it share details about what security issues it had with the company’s chips.

The ban is the latest development in an escalating feud over semiconductor technology between the US and China. In recent months, the Biden administration has moved to limit its competitor’s access to advanced chip manufacturing equipment. In January, American, Dutch and Japanese officials on lithography machines from ASL, Nikon and Tokyo Electron. As The journal notes that China has been trying to find ways to hit back at the United States. Micron was an easy target given that most Chinese companies can turn to suppliers such as South Korea’s SK Hynix to make up for any shortfalls following a ban.

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