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China to look at US chipmaker Micron’s merchandise for cybersecurity dangers

China’s our on-line world regulator will conduct a cybersecurity assessment of merchandise bought within the nation by US reminiscence chip producer Micron, the regulator mentioned on Friday (Mar 31).

The transfer, which comes amid a spat over chip know-how between Washington and Beijing, is geared toward defending the safety of the availability chain for crucial info infrastructure, stop hidden dangers and safeguard nationwide safety, the Our on-line world Administration of China (CAC) mentioned in a short assertion.

It gave no different particulars, together with which Micron merchandise it was reviewing.

In an announcement to Reuters, Micron mentioned it was conscious of the announcement and was “in communication with the CAC and are cooperating totally.” It added that it stands by the safety of its merchandise and commitments to clients.

The US has imposed a sequence of export controls on chipmaking know-how to China for worry it might be used to provide chips for functions corresponding to synthetic intelligence which might be utilized by China’s navy, and blacklisted plenty of China’s largest chip companies, together with Micron rival Yangtze Reminiscence Applied sciences Co Ltd.

Micron, one of many world’s largest reminiscence chip makers, didn’t reply instantly to a request for remark. The corporate’s shares fell three per cent to US$61.15 on Friday.

“Punitive actions in opposition to Micron may counsel a broader shift in Chinese language coverage with different US distributors with massive Chinese language publicity now probably prone to comparable actions,” Wedbush Securities analyst Matthew Bryson mentioned.

On Friday, Japan introduced it could align its know-how commerce controls with a US push to curb China’s capability to make superior chips. The Netherlands, which makes superior lithography tools crucial for the manufacture of superior chips, made an identical announcement earlier this month.

Weak client demand has roiled the reminiscence chip market, which is dominated by South Korea’s Samsung Electronics.

Micron derives round 10 per cent of its income from China, however it was not clear if the assessment would have an effect on the corporate’s gross sales to non-Chinese language clients within the nation.

The bigger chunk of the corporate’s merchandise flowing into China are being bought by non-Chinese language companies to be used in merchandise manufactured within the nation, in response to analysts.

Micron has places of work in Shanghai and Shenzhen, in addition to a chip packaging facility within the metropolis of Xian. In early 2022, the corporate introduced it could shut its DRAM design operations in Shanghai.

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