Beijing bans Chinese companies from using Micron chips in critical infrastructure

China’s cyber security regulator has banned Chinese firms from buying chips from US memory maker Micron Technology. The Cyberspace Administration of China (CAC) said on Sunday that it found the company’s products pose a “significant security risk” to critical Chinese information infrastructure, including state-owned banks and telecom operators. The ban comes after China announced a review of Micron imports in late March, which was seen as retaliation for sanctions Washington imposed on Chinese chip makers in recent years.

Idaho-based Micron is the largest memory maker in the US. The Chinese market accounts for about 10 percent of the firm’s annual revenue, although most of the companies that import Micron products into China are manufacturers of equipment for sale in other parts of the world. According to wall street journalThe CAC ban does not apply to non-Chinese firms in China. “We are evaluating the findings and assessing our next steps,” Micron. “We look forward to continuing discussions with the Chinese authorities.” The CAC did not say which Micron products would be affected by the ban, nor did it share details about security concerns with the company’s chips.

The sanctions are the latest development in an escalating dispute between the US and China over semiconductor technology. In recent months, the Biden administration has moved to restrict its rival’s access to advanced chipmaking equipment. In January, US, Dutch and Japanese officials on lithography machines from ASL, Nikon and Tokyo Electron. As the journal Note, China is trying to find ways to hit back at America. Micron was an easy target because most Chinese companies can find suppliers such as South Korea’s SK Hynix to make up for any shortfalls left by the ban.

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