China's ban on the use of U.S.-based Micron Technology's chips in certain sectors, announced on Sunday, is a stark reminder of risks facing the global chip industry as it braces for escalating Sino-U.S. trade tensions.
- in the near term, analysts said the growing geopolitical tensions cast a shadow over the industry as firms need to navigate rising uncertainties that could impact investment and supply chain management.
Micron, which generated around 11% of its revenue from chip sales in mainland China in the last fiscal year, said it looks forward to continuing to engage in discussions with Chinese authorities, without commenting on whether Beijing's decision might also affect the company's investment plans for Japan in any way.
In China, Samsung and SK Hynix, the world's No.1 and No.2 memory chipmakers, have invested billions of dollars in their, which import some equipment such as etching machines from the United States. When Washington announced restrictions on chipmaking exports to China last October, it issued a one-year waiver for Samsung and SK Hynix so they can import tools without having to apply for a license, but whether that waiver will be extended is not clear.
Analysts recommended accepting the rounds of Sino-U.S. trade war as status quo, while roundabout ways of importing memory chips may emerge in response to any further geopolitical pressure.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
China bans Micron's products, saying US chipmaker failed security reviewChina's cybersecurity watchdog says that US chipmaker Micron had failed a national security probe and told 'operators of critical information infrastructure' to stop purchasing its products
Read more »
China tells tech manufacturers to stop using Micron chips, stepping up feud with United StatesChina has stepped up a feud with Washington over security by telling users of computer equipment deemed sensitive to stop buying products from the biggest U.S. memory chipmaker, Micron Technology Inc. The country's cyberspace agency says Micron products have unspecified “serious network security risks” that threaten China’s information infrastructure and affect national security.
Read more »
Beijing bans Chinese companies from using Micron chips in critical infrastructure | EngadgetChina’s cybersecurity regulator has banned Chinese firms from buying chips from US memory manufacturer Micron..
Read more »
Samsung, SK Hynix shares rise after China fails U.S. rival Micron in security reviewShares in South Korea's Samsung Electronics 005930.KS and SK Hynix rose in morning trade on Monday after China failed U.S. memory chip rival Micron Technology in a security review.
Read more »
China Says U.S. Chipmaker Micron’s Products Pose ‘Serious Cybersecurity Risks’ As It Restricts PurchasesThe Cyberspace Administration of China has banned all operators of “critical information infrastructure” from purchasing Micron’s products.
Read more »
Micron shares slump after China threat, while Meta slips after record fineHere are some of the bigger stock movers of the day.
Read more »