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.
Zhang Yazhou was sitting in the passenger seat of her Tesla Model 3 when she said she heard her father’s panicked voice: The brakes do not work. Approaching a red light, her father swerved around two cars before plowing into a sport utility vehicle and a sedan, and crashing into a large concrete barrier. Stunned, Zhang gazed at the deflating airbag in front of her. She could never have imagined what was to come: Tesla Inc sued her for defamation for complaining publicly about the vehicles brakes — and won. A Chinese court ordered Zhang to pay more than US$23,000 in
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday said that its investment plan in Arizona is going according to schedule, following a local media report claiming that the company is planning to break ground on its third wafer fab in the US in June. In a statement, TSMC said it does not comment on market speculation, but that its investments in Arizona are proceeding well. TSMC is investing more than US$65 billion in Arizona to build three advanced wafer fabs. The first one has started production using the 4-nanometer (nm) process, while the second one would start mass production using the
US President Donald Trump has threatened to impose up to 100 percent tariffs on Taiwan’s semiconductor exports to the US to encourage chip manufacturers to move their production facilities to the US, but experts are questioning his strategy, warning it could harm industries on both sides. “I’m very confused and surprised that the Trump administration would try and do this,” Bob O’Donnell, chief analyst and founder of TECHnalysis Research in California, said in an interview with the Central News Agency on Wednesday. “It seems to reflect the fact that they don’t understand how the semiconductor industry really works,” O’Donnell said. Economic sanctions would
‘NO DISRUPTION’: A US trade association said that it was ready to work with the US administration to streamline the program’s requirements and achieve shared goals The White House is seeking to renegotiate US CHIPS and Science Act awards and has signaled delays to some upcoming semiconductor disbursements, two sources familiar with the matter told reporters. The people, along with a third source, said that the new US administration is reviewing the projects awarded under the 2022 law, meant to boost US domestic semiconductor output with US$39 billion in subsidies. Washington plans to renegotiate some of the deals after assessing and changing current requirements, the sources said. The extent of the possible changes and how they would affect agreements already finalized was not immediately clear. It was not known
RSS