The government of China initiated a cybersecurity investigation at Micron Technology in apparent retaliation for the various sanctions the United States and its allies have applied against Beijing.
In a statement distributed earlier this week, the Cyberspace Administration of China (CAC) said it will review all memory chips that Micron sells in the country.
The action is being taken to “ensure the security of key information infrastructure supply chains, prevent cybersecurity risks caused by hidden product issues, and maintain national security.
Commenting on the matter, Micron said it is aware of the CAC’s action and said it will collaborate with Chinese authorities. For analyst Matthew Bryson, from Wedbush Securities, Beijing’s movement was already expected:
The punitive actions against Micron may hint at a broader shift in Chinese policy towards other US suppliers that have large Chinese exposure. Now everyone is potentially at risk of similar actions.
Other analysts still point out that the “Chinese response” came days after Japan also vetoed the sale of machines that are used to produce high-tech chips.
For now, the US government has not commented on the matter. In any case, Micron says it continues to operate normally in China, but there is a market concern with the company’s high exposure to the Chinese government, since 10% of its revenues are obtained in China.
