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China says Micron products failed its cybersecurity review (NASDAQ:MU)

by Index Investing News
May 22, 2023
in Markets
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vzphotos/iStock Editorial via Getty Images

Update 7:50pm: Adds Micron comment.

China said it found that Micron Technology’s (NASDAQ:MU) products have “relatively serious” potential network securities issues and warned that operators of critical information infrastructure should stop purchasing the goods.

China’s Cyberspace Administration, which announced a review of memor chip maker Micron(MU) in late March, announced its findings on in a statement on Sunday.

“The review found that Micron’s products have relatively serious potential network security issues, which pose a major security risk to my country’s critical information infrastructure supply chain and affect my country’s national security,” the Chinese regulator said in the statement.

Micron said it’s evaluating China’s conclusions and assessing its next steps.

“We have received the CAC’s notice following its review of Micron products sold in China,” Micron said in a statement on Sunday. “We are evaluating the conclusion and assessing our next steps. We look forward to continuing to engage in discussions with Chinese authorities.”

The China regulator’s comments come as tensions between Beijing and the U.S. continue to rise over the supply of semiconductors and in particular, the advancement of China’s chip industry. The U.S. has been clamping down on the selling of certain semiconductor technologies to China on the grounds these products could be used for corporate or governmental espionage against the U.S.

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