Beijing has opened a new front in the escalating semiconductor battle between the US and China, launching a cybersecurity review of imports from the largest US memorychip maker, Micron Technology Inc.
The move risks further exacerbating tensions between US President Joe Biden’s administration and Chinese President Xi Jinping’s (習近平) government, which have worsened over the past few months, amid Beijing’s threats to Taiwan and an alleged spy balloon shot down over US territory in February.
The Chinese government said in a statement on Friday that it is conducting the review to ensure the integrity of its information infrastructure supply chain, prevent network security risks and maintain national security.
Photo: EPA-EFE
Boise, Idaho-based Micron said in a statement that it was in communication with the Chinese Cyberspace Administration concerning the inquiry and that it is “cooperating fully.
“Micron is committed to conducting all business with uncompromising integrity, and we stand by the security of our products and our commitments to customers,” it said.
The world’s biggest economies increasingly see each other’s tech sectors as risks to national security. That has sent Washington rushing to secure its global supply chains and seeking to fence off advanced technology.
“It’s possible that the investigation of Micron is intended to pressure the US and its allies to tread lightly on export controls,” said Gerard DiPippo, a senior fellow in the Economics Program at the Center for Strategic and International Studies in Washington. “It’s even more likely that Beijing is legitimately worried about China’s reliance on Micron chips, or really any US technology. Expect more actions like this going forward.”
The US Department of State and the US Department of Commerce’s Bureau of Industry and Security declined to comment on the Chinese action.
“This seems more political in nature than anything, a rebuttal to recent US actions. In terms of specific security risks for the products sold by Micron, I’m skeptical there’s anything there,” Morningstar Inc equity strategist Abhinav Davuluri said. “China has been investing aggressively to build out its own semiconductor ecosystem, and where we think about areas where they can be most successful, memory is one of them.”
China’s probe could threaten a potential comeback for Micron and other memorychip makers after a rough stretch.
Over the past year, a steep drop in consumer demand spurred Micron’s customers to slash orders. China’s rollback of COVID-19-related restrictions was seen as one catalyst to help the industry, as gadget makers would be able to bring manufacturing plants back to normal rhythm.
Micron last week issued a better-than-expected outlook for this quarter, forecasting sales of as much as US$3.9 billion in the fiscal third quarter compared with an average of analysts’ estimates of US$3.75 billion.
Micron CEO Sanjay Mehrotra cited expectations for improvements in the balance of supply and demand in the industry.
The company is the last remaining maker of computer memory based in the US, having survived brutal industry downturns that forced larger companies such as Intel Corp and Texas Instruments Inc to bow out.
The company has relatively little exposure to China compared with its peers, and it does not use the country as a major manufacturing base.
JITTERS: Nexperia has a 20 percent market share for chips powering simpler features such as window controls, and changing supply chains could take years European carmakers are looking into ways to scratch components made with parts from China, spooked by deepening geopolitical spats playing out through chipmaker Nexperia BV and Beijing’s export controls on rare earths. To protect operations from trade ructions, several automakers are pushing major suppliers to find permanent alternatives to Chinese semiconductors, people familiar with the matter said. The industry is considering broader changes to its supply chain to adapt to shifting geopolitics, Europe’s main suppliers lobby CLEPA head Matthias Zink said. “We had some indications already — questions like: ‘How can you supply me without this dependency on China?’” Zink, who also
At least US$50 million for the freedom of an Emirati sheikh: That is the king’s ransom paid two weeks ago to militants linked to al-Qaeda who are pushing to topple the Malian government and impose Islamic law. Alongside a crippling fuel blockade, the Group for the Support of Islam and Muslims (JNIM) has made kidnapping wealthy foreigners for a ransom a pillar of its strategy of “economic jihad.” Its goal: Oust the junta, which has struggled to contain Mali’s decade-long insurgency since taking power following back-to-back coups in 2020 and 2021, by scaring away investors and paralyzing the west African country’s economy.
BUST FEARS: While a KMT legislator asked if an AI bubble could affect Taiwan, the DGBAS minister said the sector appears on track to continue growing The local property market has cooled down moderately following a series of credit control measures designed to contain speculation, the central bank said yesterday, while remaining tight-lipped about potential rule relaxations. Lawmakers in a meeting of the legislature’s Finance Committee voiced concerns to central bank officials that the credit control measures have adversely affected the government’s tax income and small and medium-sized property developers, with limited positive effects. Housing prices have been climbing since 2016, even when the central bank imposed its first set of control measures in 2020, Chinese Nationalist Party (KMT) Legislator Lo Ting-wei (羅廷瑋) said. “Since the second half of
AI BOOST: Next year, the cloud and networking product business is expected to remain a key revenue pillar for the company, Hon Hai chairman Young Liu said Manufacturing giant Hon Hai Precision Industry Co (鴻海精密) yesterday posted its best third-quarter profit in the company’s history, backed by strong demand for artificial intelligence (AI) servers. Net profit expanded 17 percent annually to NT$57.67 billion (US$1.86 billion) from NT$44.36 billion, the company said. On a quarterly basis, net profit soared 30 percent from NT$44.36 billion, it said. Hon Hai, which is Apple Inc’s primary iPhone assembler and makes servers powered by Nvidia Corp’s AI accelerators, said earnings per share expanded to NT$4.15 from NT$3.55 a year earlier and NT$3.19 in the second quarter. Gross margin improved to 6.35 percent,
RSS