China said US chipmaker Micron Technology’s products posed “serious network security risks” as it banned operators of key infrastructure from buying them, in its first big measure against an American semiconductor group. The Cyberspace Administration of China on Sunday announced that the company, which is the biggest US maker of memory chips, “posed significant security risks to China’s critical information infrastructure supply chain.” As a result, it ordered “critical national infrastructure operators” to stop purchasing products from Idaho-based Micron. The move follows a seven-week investigation into Micron by the CAC, a probe that was widely seen as retaliation for US efforts to curb China’s access to critical technology. Last October, Washington introduced expansive chip export controls, and the Netherlands and Japan have since followed. The US Department of Commerce said it strongly opposed the action, which it said had “no basis in fact.” “This action, along with recent raids and targeting of other American firms, is inconsistent with the PRC’s assertions that it is opening its markets and is committed to a transparent regulatory framework,” the Department of Commerce said. It said it would engage with Chinese authorities to seek clarification. “We also will engage with key allies and partners to ensure we are closely coordinated to address distortions of the memory chip market caused by China’s actions,” it added. Analysts said Micron presented an obvious first target for Beijing as its tech would be more easily replaced with competitors’ chips from South Korean rivals Samsung and SK Hynix.
Very slow tit-for-tat.]]>