Reuters
An image featuring the logo of Micron is displayed alongside a smartphone placed on a computer motherboard in an illustration captured on March 6, 2023. REUTERS/Dado Ruvic/Illustration/File Photo
BEIJING, May 21 (Reuters) - China's cyberspace regulator announced on Sunday that it has deemed the products manufactured by Micron Technology (MU.O), a U.S. memory chip manufacturer, as failing its network security review. Consequently, operators of critical infrastructure will be prohibited from procuring Micron's products.
China's comprehensive definition of critical information infrastructure encompasses various sectors, including transportation and finance.
In a statement, the Cyberspace Administration of China (CAC) stated, "The review identified serious network security risks associated with Micron's products, posing significant threats to China's critical information infrastructure supply chain and national security."
Micron acknowledged receiving the CAC's notice regarding the conclusion of the review on their products sold in China and expressed their commitment to engage in ongoing discussions with Chinese authorities.
However, the CAC did not disclose specific details about the identified risks or which Micron products would be affected.
The review of Micron's products was announced by China in late March. At the time, Micron assured its cooperation and stated that its business operations in China were unaffected.
A dispute over chip technology between the governments of the United States and China is ongoing. Washington has imposed several export controls on chipmaking technology to China and has taken measures to prevent Micron's competitor, Yangtze Memory Technologies, from purchasing certain American components.
Approximately 10% of Micron's revenue is derived from China, but the impact on the company's sales to non-Chinese customers in the country remains uncertain.
Analysts suggest that a significant portion of Micron's products entering China are purchased by non-Chinese firms for use in locally manufactured goods.
In September 2021, China implemented rules aimed at safeguarding critical information infrastructure, imposing stricter requirements on operators, particularly in areas such as data security.
Although Beijing has broadly defined industries such as public communication and transport as "critical," specific details regarding the companies or business scopes affected have not been provided.
Please note that this version of the article has been rewritten to ensure uniqueness while maintaining the key information from the original content.
