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Micron’s Dual Data Rate Synchronous RAM (SDRAM) chip
Tomohiro Ohsumi | bloomberg | Getty Images
Chinese chip stocks rose Monday morning after Beijing announced it would block purchases of some products from the US memory chip maker micron.
The China Cyberspace Administration has banned operators of China’s “critical information infrastructure” from purchasing products from the US chip giant after a security review it conducted. Administration of Cyberspace in China.
Chinese authorities said that Micron’s products had failed their network security audit, and cited “potentially serious network security issues”. The company poses a “significant security risk” to China’s critical information infrastructure supply chain and affects its national security, “a statement said.
Shares of Chinese chipmakers rose largely on Monday in the wake of the move: Hong Kong-listed Hua Hong Semiconductor It rose as much as 3.14% on Monday, while less pay It increased by 2.64%.
Other memory chip producers in mainland China such as GigaDevice Semiconductor and Ingenic semiconductor jumped 3.74% and 8.08%, respectively.
In response to Beijing’s announcement, US Commerce Secretary Gina Raimondo told the Wall Street Journal: “We are strongly opposed to restrictions that have no basis in fact.” He added that the Ministry of Commerce will communicate with the Chinese government to “detail” its position and seek more clarity.
Raimondo said the United States would engage with its key allies to address Beijing’s actions, and that such actions would cause “distortions in the memory chip market.”
This comes as the US urged South Korean chip makers not to fill shortages in China if Beijing’s ban goes into effect, The Financial Times reported.
Shares of South Korean chipmakers SK Hynix and Samsung Electronics, both Micron’s competitors, rose Monday morning.
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