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JAKARTA - China's Cyber Regulatory Agency will conduct a cybersecurity review of products sold in the country by US memory chip manufacturer Micron Technology Inc. This was announced by the cyberspace regulator on Friday, March 31.

This move, which comes amid a dispute over chip technology between Washington and Beijing, aims to protect the security of critical information infrastructure supply chains, prevent hidden risks and maintain national security. This was revealed according to a brief statement from the Cyberspace Administration of China (CAC). However, no other details were mentioned, including which Micron products are being reviewed.

In a statement to Reuters, Micron said it was aware of the announcement and was "in communication with the CAC and in full coordination." The company added that it supports the safety of its products and commitments to customers.

The US has imposed a series of export controls on chip-making technology to China for fear of being used to manufacture chips for applications such as artificial intelligence that the Chinese military can use, and put a large number of Chinese chip companies, including Micron competitor Yangtze Memory Technologies Co Ltd, on the blacklist.

Micron, one of the world's largest memory chip makers, has yet to respond to a request for comment. The company's shares fell 3% to USD 61.15 on Friday. "Retaliatory action against Micron could show China's broader policy shift with other US vendors who have a major exposure to China are now at risk of facing similar action," said Wedbush Securities analyst Matthew Bryson.

On Friday, Japan announced that it would align their technology trading controls with the US push to control China's ability to manufacture advanced chips. The Netherlands, which makes advanced lithography equipment critical to the manufacture of advanced chips, announced the same thing earlier this month.

Weak consumer demand has rocked the memory chip market, which is dominated by Samsung Electronics from South Korea. Micron earns about 10% of its revenue from China, but it's not yet clear whether the review will affect the company's sales to non-China customers in the country.

A larger share of the company's products flowing into China was purchased by non-China companies for use in products manufactured in the country, according to analysts. Micron has offices in Shanghai and Shenzhen, as well as chip packaging facilities in Xian city. In early 2022, the company announced that it would close their DRAM design operations in Shanghai.


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