Micron Makes Major Move, Halts Server Chip Sales to China
Micron Technology has decided to stop supplying server chips to China after failing to recover its business following the Chinese government’s 2023 restrictions, according to two sources familiar with the matter, Reuters reported.
The sources said the company will no longer sell server chips to Chinese data centers. In 2023, China declared Micron’s products “unfit for critical infrastructure” and imposed a ban on their use. The move was widely viewed as a retaliatory measure against Washington’s technological restrictions on China’s semiconductor industry.
However, the sources confirmed that Micron will continue to supply chips for China’s automobile and mobile phone sectors.
Following the report, Micron’s shares dropped by nearly 1% in Chinese markets.
Earlier, Chinese authorities had also raised security concerns regarding chips from Nvidia and Intel, though no formal actions have been taken against them yet.
Micron was the first U.S. chip manufacturer to face such sanctions from China. Analysts view this development as a fresh flashpoint in the ongoing U.S.-China technological rivalry.
