China’s cyberspace authority declared on Sunday that Micron Technology products had failed its network security examination and that operators of crucial infrastructure would no longer be allowed to purchase from the company.
“The review found that Micron’s products have serious network security risks, which pose significant security risks to China’s critical information infrastructure supply chain, affecting China’s national security,” stated a statement from the Cyberspace Administration of China (CAC).
The CAC also stated that operators of key information infrastructure would have to discontinue buying from Micron. China’s expansive definition of “critical information infrastructure” encompasses a wide range of industries, from finance to transportation.
A request for a response from Micron was not immediately complied with. Late in March, China announced that it would be reviewing Micron’s goods. At the time, Micron stated that it was cooperating with the review and that business operations were ongoing as usual in China.
The evaluation and judgment on Micron come during a dispute between Washington and Beijing over chip technology, during which the US has placed a number of export restrictions on chipmaking technology to China and blacklisted Chinese companies, including Yangtze Memory Technologies Co Ltd., a competitor of Micron.
The CAC did not specify the hazards it had identified or which Micron goods would be affected.
It is unclear if the ruling will impact Micron’s sales to non-Chinese clients in China, where the company receives about 10% of its revenue.
According to analysts, a greater portion of the company’s products entering China are being bought by non-Chinese companies for use in goods produced there.
China implemented regulations in September 2021 that mandate their operators adhere to higher requirements around areas like data security. These regulations are aimed at protecting important information infrastructure.
Beijing has vaguely described the public communication and transportation sectors as being among the “critical” industries, but it has not made it clear what specific companies or business scopes this will apply to.
