US Chip Maker Micron Under Fire From China as Tech Tension Escalates
The Chinese government has launched a cybersecurity probe into US chip maker Micron Technology, in response to restrictions on its sale of key technology to Beijing by US allies in Asia and Europe.
The Cyberspace Administration of China (CAC) will review products sold by Micron in the country, according to a statement released late Friday. The move aims to "ensure the security of key information infrastructure supply chains, prevent cybersecurity risks caused by hidden product problems, and maintain national security," it noted.
This development comes as Washington has announced curbs on China's semiconductor industry, striking at the heart of Beijing's bid to become a tech superpower. Last month, the Netherlands also unveiled new restrictions on overseas sales of semiconductor technology, citing the need to protect national security. In October, the US banned Chinese companies from buying advanced chips and chipmaking equipment without a license.
Micron told CNN it was aware of the review and was cooperating fully with the CAC. However, shares in Micron sank 4.4% on Wall Street following the news, the biggest drop in more than three months. The company derives more than 10% of its revenue from China and had previously warned of risks such as government restrictions.
The move is seen as part of Beijing's growing pressure on foreign companies to bring them into line with its agenda. Last month, authorities closed the Beijing office of a US corporate intelligence firm and detained staff, while days earlier they suspended Deloitte's operations in Beijing for three months and imposed a fine over alleged lapses in its work auditing a state-owned distressed debt manager.
China has strongly criticized restrictions on tech exports, saying it "firmly opposes" such measures. However, the country is seeking to woo foreign investments as it grapples with mounting economic challenges. The newly minted premier Li Qiang and several top economic officials have been rolling out the welcome wagon for global CEOs, promising they would provide a good environment and services.
The escalating tensions between Washington and Beijing reflect a broader shift in the global tech landscape. As China seeks to become a major player in the industry, it is facing increasing scrutiny from US allies over concerns about intellectual property theft, surveillance, and cyber security risks.
The Chinese government has launched a cybersecurity probe into US chip maker Micron Technology, in response to restrictions on its sale of key technology to Beijing by US allies in Asia and Europe.
The Cyberspace Administration of China (CAC) will review products sold by Micron in the country, according to a statement released late Friday. The move aims to "ensure the security of key information infrastructure supply chains, prevent cybersecurity risks caused by hidden product problems, and maintain national security," it noted.
This development comes as Washington has announced curbs on China's semiconductor industry, striking at the heart of Beijing's bid to become a tech superpower. Last month, the Netherlands also unveiled new restrictions on overseas sales of semiconductor technology, citing the need to protect national security. In October, the US banned Chinese companies from buying advanced chips and chipmaking equipment without a license.
Micron told CNN it was aware of the review and was cooperating fully with the CAC. However, shares in Micron sank 4.4% on Wall Street following the news, the biggest drop in more than three months. The company derives more than 10% of its revenue from China and had previously warned of risks such as government restrictions.
The move is seen as part of Beijing's growing pressure on foreign companies to bring them into line with its agenda. Last month, authorities closed the Beijing office of a US corporate intelligence firm and detained staff, while days earlier they suspended Deloitte's operations in Beijing for three months and imposed a fine over alleged lapses in its work auditing a state-owned distressed debt manager.
China has strongly criticized restrictions on tech exports, saying it "firmly opposes" such measures. However, the country is seeking to woo foreign investments as it grapples with mounting economic challenges. The newly minted premier Li Qiang and several top economic officials have been rolling out the welcome wagon for global CEOs, promising they would provide a good environment and services.
The escalating tensions between Washington and Beijing reflect a broader shift in the global tech landscape. As China seeks to become a major player in the industry, it is facing increasing scrutiny from US allies over concerns about intellectual property theft, surveillance, and cyber security risks.
this is getting serious! I feel like we're living in a real-life spy novel 
Micron's stock just took a huge hit after China launched a cybersecurity probe against them... ouch! 
It's no wonder shares are sinking, the company does get over 10% of its revenue from China and they warned of risks earlier. 
Beijing wants to be a superpower and this is just one way to make it happen. Meanwhile, Washington is trying to chill things out with their own curbs on China's semiconductor industry 
It's like we're playing a game of geopolitical chess, but at what cost? 
i feel bad for the employees who will get affected by this. it's like, china's trying to strongarm us into doing business with them, and it's just not cool 
. at the same time, i get why they're doing this - china really wants to be a major player in tech, but they gotta play by their own rules, right? 
but china isn't having it, and now they're pushing back hard. it's like a game of chicken between the two superpowers... who will blink first? 
chinese govnt sayin they just wanna "protect national security" lol like how can u protect ur country's security by hurtin other ppl's businesses? 
. u think china is gonna win this tech game or are we still in the lead? 
. And what's with all these restrictions? Are they really going to solve anything or are they just gonna push companies around 
, this whole thing with Micron and China is getting super tense 
). Seriously though, this is a whole big deal because Micron makes so much of its revenue from China. Like, what if they have to cut ties with the country or something? 
. But at the same time, I feel like this is just a big game of "tech chicken" where everyone's trying to outdo each other 
. It's hard to know what's really going on or who's coming out on top.
and keep making those awesome chips 
! 
. Is it really just about ensuring national security and preventing cybersecurity risks, or is there more to it? I mean, China's already got its own tech industry up and running - why are they suddenly getting all up in arms over foreign companies like Micron?
. On the one hand, you've got China trying to assert its dominance in the global tech landscape; on the other hand, countries like the US and Netherlands are pushing back against that. It's all getting pretty complicated 
.
it's all about who can keep up with tech advancements and china is trying to catch up fast 
It's like, who's right? Should countries be allowed to regulate their own tech exports or is that just protectionism?
Micron's shares are tanking because of this probe? I feel bad for them, they're just trying to navigate these complex tech politics... Interesting how China's getting more aggressive in its pursuit of becoming a tech superpower 
. I'm all for fair play, but isn't this just another way to get foreign companies to toe the line? 
says it all. China just got bold and now we'll see how this whole tech tension escalates 
. This whole thing feels like a game of global tech chess - each move sparks a reaction from the others. The more China tries to flex its muscles, the more US and allies push back 
.
. It's like, China's all "we want to be tech superpowers too" 
. With all these security risks and IP theft stuff going on, it's like... how do we even trust anyone anymore?