In a first ever move the Cyberspace Agency of China, China’s information security and Internetwork regulatory, bans Micron products from being used in critical Chinese infrastructure.

CAC’s ban comes after the US-led campaign to ban Huawei phones and network devices from being used in US and allied markets. The US Chip Act which diverts more investment into onshore semiconductor manufacturing. And the ongoing campaign the Chinese government is waging against US network infrastructure.

CAC said Micron’s products pose serious “network security risks.” Their announcement didn’t contain any details on which risks Micron products pose, but I think that doesn’t matter.

Impact to Micron

Micron was relatively silent in their response. Micron’s primary business in China produces chips for smartphones and computers. Chinese sales do account for 10% of Micron’s profits.

The US Department of Commerce has reacted negatively to CAC’s announcement. Calling the move unbiased in facts. The US has called on Korean chip makers to not make up any shortfall arising out of Micron’s ban.

Meanwhile, Micron’s CEO, Sanjay Mehrotra attended last week’s G7 meaning in Hiroshima, Japan. He announced Micron will invest $3.6 billion in chipmaking facilities inside the country.

I wonder why China is upset.