China is looking into a US chip manufacturer for "security threats."
April 2, 2023Tweet
China has opened an investigation into Micron Technology, an Idaho-based semiconductor firm, as the US seeks to curtail Beijing’s access to these vital electronic components. The Cyberspace Administration of China (CAC) said that it opened its investigation in order to “safeguard key information infrastructure supply chain security” and “prevent cyberspace security risks due to problematic products.” The probe mirrors US investigations into Chinese technology firms like Huawei, which suffered two straight years of declining profits in 2021 and 2022, and the Biden administration is reportedly planning to hammer Huawei with export controls to hasten the Chinese firm’s “demise.” An investigation into Micron would seriously harm the company’s bottom line, as China accounts for 10% of its sales. Micron's Chinese-made products directly compete with those of domestic firms, meaning the probe stands to benefit indigenous industry. Semiconductors are used in a host of modern devices, with Taiwan producing more than 60% and much of the remainder split between South Korea, Japan, the US, and China. The US has recently moved to extend its control over the industry, offering $52 billion in federal funding and imposing export controls to block the sale to China of the hardware and software used to produce chips.
The US is currently in talks with Japan, South Korea, and Taiwan to formalize the so-called 'Chip 4 Alliance', which Beijing sees as an attempt to exclude China from semiconductor supply chains. Micron allegedly lobbied the Biden administration to pass the manufacturing funding bill, and closed a chip design center in Shanghai months before it became law. In a statement on Friday, the company said that it is "cooperating fully" with the CAC and that it stands by the security of its products.