China bans shipments from U.S. memory chipmaker Micron Technology

2 min readUpdated May 27, 2025May 22, 20235:42 AM

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The U.S. has banned phones and networking equipment from Huawei and ZTE due to fears that these companies’ products have backdoors that send information to Beijing. This weekend, China went on the attack against U.S. memory chip maker Micron Technology by banning its chips from the country. According to the South China Morning Post (SCMP), Micron is considered a “national security risk” which is exactly what the U.S. calls Huawei and ZTE.

The U.S. Commerce Department said it “firmly opposes restrictions that have no basis in fact.” Besides getting back at the U.S. for banning products made by Huawei and ZTE, the move against Micron is retaliation for U.S Export rules that were put into place in 2020 that prevent certain chips made using American technology from being shipped to China.

The U.S. Commerce Department added that “We will engage directly with PRC (People’s Republic of China) authorities to detail our position and clarify their action. We also will engage with key allies and partners to ensure we are closely coordinated to address distortions of the memory chip market caused by China’s actions.”

Micron Technology, located in the heart of potato country in Boise, Idaho, released its own statement early Monday morning which said that it was aware of the decision made by Beijing and was examining its next steps. It also said, “We look forward to continuing to engage in discussions with Chinese authorities.” Last year Micron generated 11% of its $30.8 billion in revenue from China selling DRAM, NAND flash memory, and solid-state drives.

Micron’s biggest customers in China were Lenovo, Xiaomi, Inspur Electronics Information, ZTE, Coolpad, China Electronics Corp, and Oppo. South Korean memory chip suppliers Samsung Electronics and SK Hynix will benefit from the ban. China’s own Yangtze Memory Technologies Corp. could also see some additional business with the ban of Micron in China.

China’s Cyber Security Review Office under the Cyberspace Administration of China (CAC) had said back in March that it was investigating Micron and on Monday China said that Micron failed to pass a cybersecurity review. As a result, Micron’s chips cannot be used by telecom operators, banks, water utilities, and other companies. The CAC said that its review of Micron revealed “severe cybersecurity risks, posing significant security risks to China’s critical information infrastructure supply chain and to our national security.”

We’re sure to hear more about this in the coming days.

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Questions & Answers

What reason did China give for banning Micron Technology's chips?

China’s Cyber Security Review Office stated that Micron failed a cybersecurity review. They found severe cybersecurity risks, posing significant threats to China’s critical information infrastructure supply chain and national security.

Which specific sectors in China are now prohibited from using Micron's chips?

As a result of the ban, Micron’s chips cannot be used by telecom operators, banks, water utilities, and other companies. This restricts their use across several critical infrastructure areas.

What was the financial impact of sales to China on Micron's revenue last year?

Last year, Micron generated 11% of its $30.8 billion in revenue from China. This means that China accounted for approximately $3.39 billion of their total sales.

Which companies are expected to benefit from the ban on Micron's products in China?

South Korean memory chip suppliers Samsung Electronics and SK Hynix are expected to benefit. China’s own Yangtze Memory Technologies Corp. Could also see additional business due to the ban.

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