China probing US firm Micron's products, escalating chip battle

Beijing cites security concerns; chipmaker says it is cooperating fully’ with inquiry

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BEIJING - Beijing opened a new front in the escalating semiconductor battle between the United States and China, launching a cyber security review of imports from America's largest memory chip maker, Micron Technology.

The move risks further exacerbating tensions between the Biden administration and President Xi Jinping's government, which have worsened in recent months over the security of Taiwan and the alleged spy balloon shot down over US territory in February.

The Chinese government said in a statement on Friday that it is conducting the review to ensure the integrity of its information infrastructure supply chain, prevent network security risks and maintain national security.

Shares of Micron, which counts on mainland China for about 11 per cent of its sales, fell as much as 5.1 per cent in New York to US$59.90.

Boise, Idaho-based Micron said in a statement that it was in communication with the Cyberspace Administration of China concerning the inquiry and that the company is "cooperating fully. Micron is committed to conducting all business with uncompromising integrity, and we stand by the security of our products and our commitments to customers".

The world's biggest economies increasingly see each other's tech sectors as risks to national security.

That has sent Washington rushing to secure its global supply chains and seeking to fence off advanced technology.