China cybersecurity watchdog fails Micron, urges halt on chip purchases

China’s cybersecurity watchdog has announced that US semiconductor firm Micron failed its national safety evaluate, urging operators of “critical information infrastructure” to cease buying its products. This marks a model new improvement within the ongoing chip dispute between the US and China, with the US looking for to restrict Beijing’s access to advanced semiconductors. In March, Chinese authorities initiated a review of Micron’s merchandise offered in the country, one of many world’s leading chip producers.
Banned (CAC) acknowledged in a launch that Micron’s merchandise “have comparatively critical potential network security points, which pose a serious safety risk to China’s critical information infrastructure supply chain and have an effect on China’s nationwide safety.” It added that “operators of important information infrastructure in China ought to cease buying Micron products.” China’s definition of crucial data infrastructure spans numerous sectors, from transport to healthcare.
In response to the CAC’s conclusion of its evaluate, Micron said in a press release, “We are evaluating the conclusion and assessing our subsequent steps.” When asked if the corporate plans to enchantment the decision, a Micron spokesperson responded, “We look forward to persevering with to engage in discussions with Chinese authorities.”
According to company information, approximately 10% of Micron’s US$30.eight billion annual revenue last year got here from China. However, analysts previously said that a good portion of Micron products sold in the nation were bought by foreign producers, and it is unclear if the cybersecurity watchdog’s decision impacts sales to such consumers.
In 2021, China launched regulations to protect crucial info infrastructure with stricter data safety necessities and has lately stepped up enforcement of its knowledge safety and anti-espionage legal guidelines. The semiconductor dispute between Beijing and Washington intensified final 12 months when the US imposed restrictions on China’s entry to high-end chips, chipmaking gear, and semiconductor design software program. The US also blacklisted a number of Chinese corporations, together with Micron’s competitor Yangtze Memory Technologies Co Ltd, citing nationwide safety issues.
In response to the US’s actions, Beijing has criticised the strikes as “US bullying tactics” and accused Washington of “technological terrorism,” pledging that such controls will solely strengthen its willpower to realize self-reliance in the sector. The Chinese government has lengthy aimed to develop a strong home semiconductor industry and has invested billions of dollars in local chip companies..

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