Micron products banned in China due to national security risks

Micron products were banned from key infrastructure in China after the US-based chip firm's products failed a national security review, said a top-level Chinese industry regulator.

Micron products posed "serious network security risks" in the national security review. Therefore, the products are banned from key infrastructures, based on the national Cybersecurity Law, the Cyberspace Administration of China said in a statement on Sunday.

Micron is the top US memory chipmaker and the world's No. 3 player in the market. Its products are used to store and manage huge volumes of data every day.

Credit: Zhu Shenshen / SHINE

In the chip industry, the latest move occurred alongside stricter export control and bans from US regulators, who often cite "national security risks" to tighten their regulations.

Besides Micron, other major memory chipmakers are from South Korea and Japan. Meanwhile, Chinese firms are expanding their capacities to meet the surging demands from artificial intelligence development, booming electric car sales and data security requirements, experts said.

The move is expected to bring business opportunities and market spaces for Chinese firms, CITIC Securities said in a report on Monday.

In China, Micron products are widely used in smartphones, computers and smart devices. The ban will not influence Micron's business in the consumer electronic sector, analysts said.

In 2022, Micron's revenue in the Chinese mainland was US$3.3 billion, contributing 11 percent of its global revenue.