MU - Micron Has a China Problem
2023-05-23 06:20:00 ET
Memory-chip manufacturer Micron (NASDAQ: MU) is already dealing with the worst industry downturn in more than a decade. Revenue plunged 53% year over year in the company's latest quarter as prices for DRAM and NAND chips continued to plummet. Micron posted a whopping $2.3 billion loss, its largest ever.
In a case of extremely bad timing, China's Cyberspace Administration has told operators of crucial information infrastructure in China to stop purchasing products from Micron. This comes after an official review of the company, and the move is likely in retaliation for measures taken by the U.S. and Japan to restrict Chinese access to semiconductor technology.
Right now, China is incapable of replacing something like an advanced CPU or GPU with a home-grown alternative or with a product from a company outside the U.S.
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Micron Has a China Problem