With concerns for national security, China’s Cyberspace Administration has asked operators of the country’s important information infrastructure to avoid acquiring Micron Technology products.
While Micron said it is studying the conclusion and determining its future steps, the US. The Department of Commerce dismissed the restriction as unfounded.
China’s Blockade of Micron Raises Concerns for Foreign Businesses
The decision to block Micron comes as a surprise to the foreign business community in China, raising concerns among US and European companies about potential security reviews and the impact on the semiconductor supply chain.
Despite having facilities and offices in China, top memory chip manufacturer Micron has suffered a reduction in sales to that country as a result of the trade spat between the United States and China.
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Korea Maintains Cautious Stance Amid US-China Chip War
In the midst of the escalating trade war between the two largest economies in the world, Korea maintained a cautious posture once more between the US and China during a series of trade ministerial discussions in Detroit last weekend.
The Korean government did not mention its cooperation with China in the semiconductor industry in a news release it published after the APEC trade ministers’ meeting on Thursday and Friday.
The Chinese government asserted that the two governments’ trade ministers had discussed this matter during their meeting before this release.
The Chinese commerce ministry asserted that the ministers had agreed to intensify their discussions and cooperation in the semiconductor industry, but a representative of the Korean trade ministry asserted that China had only stressed the importance of such cooperation without reaching an agreement with Korea.
In light of China’s dispute with the US over semiconductor supply chains, industry insiders regard Beijing’s unilateral declaration as an effort to court Korean chipmakers.
On Tuesday, the Korean government also refuted claims that it authorized Samsung Electronics and SK Hynix to step in and take over for American chipmaker Micron Technology when China banned its imports. Korea is being urged by Congress not to use the circumstance.
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