By Hyunjoo Jin and Brenda Goh
SEOUL/SHANGHAI (Reuters) -Micron plans to cease supplying server chips to knowledge centres in China after the enterprise didn’t recuperate from a 2023 authorities ban on its merchandise in important Chinese language infrastructure, two folks briefed on the choice stated.
Micron was the primary U.S. chipmaker to be focused by Beijing – a transfer that was seen as retaliatory for a sequence of curbs by Washington geared toward impeding tech progress by China’s semiconductor business.
Since then, each Nvidia and Intel chips have equally fielded accusations from Chinese language authorities and an business group of posing safety dangers, although there has not been any regulatory motion.
LENOVO TO REMAIN A CUSTOMER
Micron will proceed to promote to 2 Chinese language clients which have vital knowledge centre operations exterior China, one among which is laptop computer maker Lenovo, the folks stated.
The U.S. firm, which made $3.4 billion or 12% of its whole income from mainland China in its final enterprise 12 months, can even proceed to promote chips to auto and cell phone sector clients on the planet’s second-largest economic system, one individual stated.
Requested concerning the exit from its China knowledge centre enterprise, Micron stated in a press release to Reuters that the division had been impacted by the ban, and it abides by relevant rules the place it does enterprise.
Lenovo didn’t instantly reply to a request for remark.
U.S.-Sino commerce tensions and tech rivalry have solely escalated since 2018, when U.S. President Donald Trump started imposing tariffs on Chinese language items throughout his first time period. That very same 12 months, Washington ramped up accusations in opposition to Chinese language tech large Huawei, accusing it of representing a nationwide safety threat, imposing sanctions a 12 months later.
Huawei has denied these expenses. Nvidia and Intel have additionally denied expenses that their merchandise pose dangers to Chinese language nationwide safety. Micron additionally stated in 2023, earlier than the conclusion of China’s probe, that it stood by the safety of its merchandise.
Presently, the U.S. has sanctioned tons of of Chinese language entities. China, which is extra reliant on imported tech, has taken far fewer regulatory actions.
LOSING OUT ON CHINA’S AI BOOM
The ban on Micron merchandise in important infrastructure by China – the world’s second-largest marketplace for server reminiscence – has meant the corporate has missed out on the nation’s knowledge centre growth increase.
That is benefited rivals Samsung Electronics and SK Hynix, in addition to Chinese language firms YMTC and CXMT, which have been aggressively increasing with the help of the Chinese language authorities.
