China bans working with American Micron

2023-05-21 14:37:00

The war of nerves between China and the United States over semiconductors is picking up once more. China’s cybersecurity body on Sunday announced an investigation into alleged security lapses at U.S. manufacturer Micron Technology and advised Chinese companies working with sensitive data to stop buying Micron’s products. the American firm.

This investigation is part of the battle the United States is waging to try to restrict China’s access to the most advanced chips. It also comes once morest a backdrop of tougher Chinese national security laws. China had announced in early April a procedure once morest Micron, in order to ” review “ the products of the manufacturer of electronic components and to prevent possible “risks” for his “national security”. China tried to put the decision into perspective by presenting it as a simple “regulatory measure”.

Semiconductor Cold War

Also in the name of national security, the US government had announced in October 2022 new export controls to limit Beijing’s purchase and manufacture of high-end chips. “used in military applications”. In practice, Chinese foundries can no longer import high-performance components from American suppliers, nor machines to manufacture them.

The European Union for its part reached an agreement last month on a plan to develop the semiconductor industry on its own territory to reduce its dependence on Asia. And following the United States and the Netherlands, where the headquarters of ASML, the undisputed leader in machines for manufacturing chips, is located, Japan announced at the end of March its intention to restrict its exports of manufacturing equipment. semiconductors, drawing the wrath of China.

For its part, Beijing has already spent over the past ten years billions of dollars for its own semiconductor industry, in order to no longer depend on foreign imports for its electronic chips. Already, major Chinese groups like CMXT or YMTC are beginning to emerge, in head-on competition with groups like Micron. In 2021, China imported more than $430 billion worth of semiconductors, more than the country spends on oil.

Micron Technology, very present in China (regarding 10% of its turnover), therefore bears the brunt of these rivalries, especially since it is already having to deal with a historic drop in the price of memory chips.