Micron Technology, one of America's largest memory chip makers, has been probed by China for cybersecurity risks amid escalating tensions between the US and China in the tech sector.
The Cyberspace Administration of China (CAC) launched an investigation into Micron, citing concerns over the potential security risks posed by the company's products. The move comes as part of a broader effort to ensure the security of key information infrastructure supply chains and prevent cybersecurity threats.
This development follows recent announcements by US allies in Asia and Europe that have restricted the sale of key technology to Beijing. These measures are aimed at curbing China's growing influence in the tech sector, which is seen as crucial to its bid to become a global superpower.
Micron has expressed awareness of the review and is cooperating fully with the CAC. However, shares in the company plummeted on Wall Street following the news, shedding 4.4% on Friday, the largest drop in over three months. This decline was exacerbated by the fact that Micron derives more than 10% of its revenue from China.
In a previous filing, Micron had warned about potential risks associated with its operations in China, including the possibility of restrictions on its participation in the Chinese market or limitations on its ability to compete effectively with local companies. The company stated that it is committed to maintaining the security of its products and will continue to operate its business as normal.
China has strongly criticized these restrictions, viewing them as an attempt to curb its own economic growth and job creation efforts. Beijing's newly appointed premier Li Qiang has been actively promoting foreign investments in a bid to boost the economy amidst mounting challenges.
However, the Chinese government has also been exerting pressure on foreign companies to align their operations with its agenda. This includes detaining staff from US corporate intelligence firm Mintz Group and suspending Deloitte's operations in Beijing for three months over alleged work auditing lapses.
As tensions between the US and China continue to escalate, Micron's exposure to these risks highlights the complex web of economic and security challenges facing both countries in the tech sector.
The Cyberspace Administration of China (CAC) launched an investigation into Micron, citing concerns over the potential security risks posed by the company's products. The move comes as part of a broader effort to ensure the security of key information infrastructure supply chains and prevent cybersecurity threats.
This development follows recent announcements by US allies in Asia and Europe that have restricted the sale of key technology to Beijing. These measures are aimed at curbing China's growing influence in the tech sector, which is seen as crucial to its bid to become a global superpower.
Micron has expressed awareness of the review and is cooperating fully with the CAC. However, shares in the company plummeted on Wall Street following the news, shedding 4.4% on Friday, the largest drop in over three months. This decline was exacerbated by the fact that Micron derives more than 10% of its revenue from China.
In a previous filing, Micron had warned about potential risks associated with its operations in China, including the possibility of restrictions on its participation in the Chinese market or limitations on its ability to compete effectively with local companies. The company stated that it is committed to maintaining the security of its products and will continue to operate its business as normal.
China has strongly criticized these restrictions, viewing them as an attempt to curb its own economic growth and job creation efforts. Beijing's newly appointed premier Li Qiang has been actively promoting foreign investments in a bid to boost the economy amidst mounting challenges.
However, the Chinese government has also been exerting pressure on foreign companies to align their operations with its agenda. This includes detaining staff from US corporate intelligence firm Mintz Group and suspending Deloitte's operations in Beijing for three months over alleged work auditing lapses.
As tensions between the US and China continue to escalate, Micron's exposure to these risks highlights the complex web of economic and security challenges facing both countries in the tech sector.
The whole thing with Micron is super awkward. I mean, I get why China's all like "Hey, we need to protect our info" but at the same time, it feels like they're being pretty chill about it themselves. Like, have you seen their earnings reports? They're basically just saying "Hey, we know we have some revenue tied up in China, but let's just keep on trucking". 
And now their shares are tanking because of this probe... it's like they're caught between a rock and a hard place. 
. On one hand, it's true that US allies in Asia and Europe are restricting sales to China, but is it really fair to single out Micron? 
... Like, what if China starts targeting them too? 
. We need more transparency and international cooperation to tackle these kinds of threats 
.
. If companies start getting scared off by China's aggression, we'll be seeing some serious ripple effects in the market 
. Not good for anyone, you know 
.
, but it kept spitting out tiny cups everywhere! I mean, what's up with that? You'd think it would be able to make a decent cuppa without making a mess. Anyway, back to Micron... have you ever tried making your own memory chips at home? I don't think they sell those things in stores anymore 
. Oh, and did you know that the first computers used vacuum tubes instead of transistors? That's wild! 
. I've got a friend who works at Deloitte and they told me it's getting super tough to operate in China these days. They have to be all like "beijing or bust" and stuff 
. But on the other hand, I feel bad for Micron because they're losing so much revenue from China 
. What do you guys think? Should we just let China have their tech cake or what 
?
micron's just a small fish in a big pond, prob can't even compete with some of the bigger players like tsmc or samsung 
so micron's probs doin what any sensible company would do in this situation - keep its head down and hope for the best 
doesn't help that their china biz is pretty big tho 
. like what even is going on? they're already 10% of their revenue from china, so it's not like they can just switch to canada or something 
. US allies in asia and europe are doing the same thing, which is pretty suspicious if you ask me 
. at least micron is cooperating, but 4.4% drop? that's a big deal 
.
Anyway, I guess we can just sit back and enjoy the show while these two giants play their tech-ego game out to the world 
It's like they're saying "hey, you're making products that could be used against us, so we need to keep an eye on you". I mean, I get it, security is important, but this feels like a bit of a slippery slope. First, it's Micron, then who knows who else? 
It's all about the tech sector right now and how it affects the global economy. I wish they could just keep things calm and focus on innovation, but I guess that's not how it works in this game of geopolitics... 
. I mean, you can't just sit back and expect your competition to magically disappear when you start building up your own tech empire. 
But seriously, it's a big deal for Micron because they do have a significant presence in China, which is like, their second-largest market or something 
.
. it's hard to know what's really going on sometimes 
.