Micron Technologies (NASDAQ:MU)
Micron Technologies (NASDAQ:MU), the world’s largest maker of memory semiconductors, came under the scrutiny of Beijing’s national cyberspace regulator on Friday, causing tensions to rise between the United States and China on their respective commercial dealings.
As part of assessing the cybersecurity of the nation’s supply chain, the Cyberspace Administration of China has said it is investigating goods manufactured by Micron sold in the country. It is stated that the evaluation would include topics such as China’s information infrastructure and the hidden security threats that are present in the operations of China’s technology supply chain.
According to reports, Chinese authorities did not provide details on which Micron products were being evaluated.
The United States and China have seen their relations deteriorate in recent times due to both nations ramping up their rhetoric about issues such as security and the links that Chinese corporations have to the government and military in Beijing. At the beginning of this year, the United States government implemented export controls on businesses that sold chip technology to Chinese customers due to concerns that those products could be utilized by the Chinese military in artificial intelligence and other applications to undermine the national and corporate security of the United States.
After the revelations of the inquiry being conducted by the Chinese government, Micron stock dropped by approximately 4%.
Micron stock announced its results for the fiscal second quarter on Tuesday, which included a significant decrease in sales compared to last year. Despite this, the company stated that it was cautiously confident that its business would get back on track in the second half of this year.
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