This is the second episode of this protracted melodrama, the U.S. counterattack on these Chinese obstacles to Micron Technology. The United States, of course, will not allow this to happen, because it is a major player in the semiconductor industry and one of the world’s leading manufacturers of memory chips.
The trade war between the United States and China is escalating with a new chapter involving U.S. memory company Micron Technology. China has imposed restrictions and blacklisted several U.S. companies as threats to national security.
Now China has put roadblocks in the way of Micron Technology, and production at its memory factory in the Asian country has declined. In addition, Micron’s financial reports show a significant drop in sales. For its part, China has scrutinized Micron’s products for possible cybersecurity issues. Micron has asserted that it is cooperating with Chinese authorities in this investigation.
U.S. Commerce Secretary Gina Raimondo stated that the U.S. will not stand for China’s ban on Micron Technology’s memory chip purchases and is working with allies to fight the “economic duress” imposed on the DRAM and flash chip market leader.
Raimondo also stated that the U.S. strongly opposes China’s action against Micron and views it as economic coercion that has no basis in fact. The statement came after China’s cyberspace regulator claimed Micron failed the Asian country’s national security review.
The U.S. secretary also noted that this particular issue, as well as others related to China’s noncommercial practices, will be addressed in cooperation with international partners. She also emphasized that the investments under the U.S. CHIPS Act are intended to strengthen domestic semiconductor production, and that companies from other countries are also expected to participate in funding the CHIPS Act.