Micron Technology plans to stop supplying server chips to data centres in China after the business failed to recover from a 2023 government ban on its products in key infrastructure, Reuters reported on Friday.
The US memory chipmaker was the first American firm to be targeted by Beijing in what was widely seen as retaliation for Washington’s efforts to restrict China’s access to advanced semiconductor technology.
Since the ban, both NVIDIA and Intel have faced similar scrutiny from Chinese authorities and industry groups over alleged security risks, though no formal action has been taken against them.
Micron will continue to sell chips to two Chinese customers with major data centre operations outside the mainland, including laptop maker Lenovo, the sources told Reuters. The company, which generated $3.4 billion – or 12 per cent of its total revenue – from mainland China in its last fiscal year, will also keep supplying clients in the automotive and mobile phone sectors, one of the people added.
Asked about the withdrawal, Micron told Reuters the division had been affected by the ban and that it complies with applicable regulations in every market where it operates. Lenovo did not immediately respond to a request for comment.
Tensions between Washington and Beijing over trade and technology have continued to escalate since 2018, when former US President Donald Trump imposed tariffs on Chinese goods and accused Huawei of posing national security risks. Huawei has denied those allegations, while Nvidia, Intel and Micron have also defended the security of their products.
China’s restrictions have left Micron sidelined from the country’s fast-growing data centre and artificial intelligence market, the world’s second largest for server memory. The gap has been filled by South Korea’s Samsung Electronics and SK Hynix, as well as Chinese manufacturers YMTC and CXMT, which are expanding with state backing.
Follow us on
