MU - Micron stock falls; Chinese regulators review company's chip products

2023-03-31 10:04:24 ET

Business issues between the United States and China heated up on Friday as memory semiconductor giant Micron Technology ( NASDAQ: MU ) found itself under the microscope of Beijing's national cyberspace regulator.

The Cyberspace Administration of China said it is investigating Micron ( MU ) products sold in the country as part of a cybersecurity review of the nation's supply chain. The review is said to cover issues such as information infrastructure and hidden security risks in China's technology supply chain operations.

Chinese officials reportedly gave no information about which Micron ( MU ) products were under review.

The U.S. and China have seen relations cool of late as both countries have stepped up rhetoric around matters such as security and Chinese companies' ties to the Beijing government and military. Earlier this year, the U.S. imposed export controls on companies selling chip technology to Chinese over concerns that those products could be used by China's military in artificial intelligence and other applications to undermine U.S. national and corporate security.

Micron ( MU ) shares fell almost 4% following the reports of the Chinese government investigation.

On Tuesday, Micron ( MU ) reported fiscal second-quarter results that included a big drop in sales from a year ago, but the company said it was cautiously confident about its business getting back on track in the second half of this year .

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