U.S. Department of Commerce says China's ban on Micron is "unfounded"

USINGLEAGUE 2.0

 

The largest memory chip manufacturer in the United States, Micron Technology, has been accused by the Chinese government of having "serious cybersecurity risks" that pose a hazard to China's information infrastructure and affect national security. Accordingly, the operation of China's critical information infrastructure is required manufacturers to stop purchasing Micron products. The U.S. Department of Commerce said on Sunday (May 21): "We firmly oppose the ban that has no factual basis."

Micron stated in a statement that it is studying the conclusions of the Chinese official review, will evaluate the content and follow-up actions, and hopes to continue discussions with the Chinese authorities.

The U.S. Department of Commerce issued a statement pointing out that China’s ban on Micron and previous raids on U.S. companies run counter to China’s declared open market and transparent regulatory policies. The Ministry of Commerce also emphasized that it will contact and cooperate with major allies and partners to solve the "distortion of the memory chip market caused by China's actions."

Micron is a memory chip giant along with Samsung Electronics and SK Hynix. About 10% of Micron's revenue comes from the Chinese market. According to industry analysis, if Micron is blocked in China, Korean manufacturers will directly benefit.

The Financial Times quoted sources as saying last month that Washington told the South Korean government that if Micron is banned from selling in China after being investigated by the China Cyberspace Administration, it is hoped that Seoul will urge Samsung Electronics and SK Hynix not to take advantage of the situation to increase their sales of chips to China. Sales, lest the vacancy in the Chinese market be filled.

China's Cyberspace Administration of China announced on Sunday that the review found that Micron's products had serious cyber security risks, which "caused major security risks to China's critical information infrastructure supply chain and affected China's national security." For this reason, the Cyber ​​Security Review Office stated that it "has made a conclusion that it will not pass the cyber security review in accordance with the law."

Reuters reported that under China's broad definition, the ban means that many sectors, from banking and financial companies to railways, roads and telecommunications facilities, cannot use Micron's products.