Micron Technology: China probes US chip maker for cybersecurity risks as tech tension escalates | CNN Business

Hong Kong

China has launched a cybersecurity probe into Micron Know-how, one in every of America’s largest reminiscence chip makers, in obvious retaliation after US allies in Asia and Europe introduced new restrictions on the sale of key know-how to Beijing.

The Our on-line world Administration of China (CAC) will evaluate merchandise offered by Micron within the nation, in line with a press release by the watchdog late on Friday.

The transfer is aimed toward “making certain the safety of key data infrastructure provide chains, stopping cybersecurity dangers attributable to hidden product issues, and sustaining nationwide safety,” it famous.

It got here on the identical day that Japan, a US ally, mentioned it could prohibit the export of superior chip manufacturing tools to international locations together with China, following comparable strikes by the US and the Netherlands.

Washington and its allies have introduced curbs on China’s semiconductor business, which strike on the coronary heart of Beijing’s bid to grow to be a tech superpower.

Final month, the Netherlands additionally unveiled new restrictions on abroad gross sales of semiconductor know-how, citing the necessity to defend nationwide safety. In October, the US banned Chinese language firms from shopping for superior chips and chipmaking tools and not using a license.

Micron instructed CNN it was conscious of the evaluate.

“We’re in communication with the CAC and are cooperating totally,” it mentioned, including that it stands by the safety of its merchandise. “Micron’s product shipments, engineering, manufacturing, gross sales and different capabilities are working as regular.”

Micron Technology's office in Shanghai in August 2019

Shares in Micron sank 4.4% on Wall Road Friday following the information, the most important drop in additional than three months. On Monday, they closed one other 1.2% decrease. Micron derives greater than 10% of its income from China.

In an earlier submitting, the Idaho-based firm had warned of such dangers.

“The Chinese language authorities could prohibit us from taking part within the China market or could stop us from competing successfully with Chinese language firms,” it mentioned final week.

China has strongly criticized restrictions on tech exports, saying final month it “firmly opposes” such measures.

In efforts to spice up progress and job creation, Beijing is looking for to woo international investments because it grapples with mounting financial challenges. The newly minted premier Li Qiang and a number of other prime financial officers have been rolling out the welcome wagon for world CEOs and promising they might “present a superb surroundings and companies.”

However Beijing has additionally exerted rising strain on international firms to carry them into line with its agenda.

Final month, authorities closed the Beijing workplace of Mintz Group, a US company intelligence agency, and detained 5 native employees.

Days earlier, they suspended Deloitte’s operations in Beijing for 3 months and imposed a superb of $31 million over alleged lapses in its work auditing a state-owned distressed debt supervisor.

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