China's Cyberspace Administration has announced that it will be conducting a review of US-based memory chip maker Micron's products sold in the Chinese market to ensure key information infrastructure supply chain security and to prevent cybersecurity risks. The move is in accordance with China's state security law, cybersecurity law, and cybersecurity review measures. The review comes amid increasing tensions over technology between China and the US. The cybersecurity regulator did not provide specific details but possible reasons include risks of data theft and disruption to supply chains due to political, diplomatic, or trade issues. Micron's sales revenue dropped by 53% in the second fiscal quarter ended March 2.
The review of Micron's products in China is part of a wider trend of increased scrutiny of foreign companies operating in the country, particularly in the technology sector. In recent years, the Chinese government has implemented a series of regulations and measures aimed at ensuring the security and integrity of the country's cyberspace.
In some cases, these measures have been seen as protectionist, with foreign companies accusing China of using national security as a pretext to exclude them from certain markets or to gain access to their intellectual property. However, the Chinese government has argued that the measures are necessary to safeguard the country's national security and to prevent cyberattacks and other cybersecurity risks.
The review of Micron's products comes at a time when the company is already facing significant challenges in the market. Micron's sales revenue dropped by 53% in the second fiscal quarter ended March 2, due in part to weak demand for PCs and smartphones. As a result, the company is reportedly planning to cut its workforce by 10 to 15 percent.
The announcement of the review has also had an immediate impact on Micron's share price, which dropped by nearly 3% in pre-market trading on Friday. The company's shares have been under pressure for much of the past year, reflecting concerns about slowing demand for memory chips and increased competition from Chinese rivals.
Overall, the review of Micron's products is a reminder of the complex geopolitical and economic factors that are shaping the global technology industry. As tensions between China and the US continue to escalate, it is likely that we will see more measures like this in the future, as both sides seek to protect their national interests and secure their positions in the global market.
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