US semiconductor manufacturer Micron was accused of “security failures” by China on Sunday May 21. Consequently, Beijing is trying to limit the use of its products in China. This episode illustrates a new development about US-China “chip war”.

US semiconductor giant Micron has failed a national security review, China’s cybersecurity watchdog said Sunday, telling operators of “critical information infrastructure” to stop buying its products.

Micron’s products “have relatively serious potential network security issues, which pose a major security risk to China’s critical information infrastructure supply chain and affect China’s national security”, the cybersecurity administration (CAC) said in a statement.

When asked if the company will appeal the decision, a spokeswoman for Micron said: “We look forward to continuing to engage in discussions with Chinese authorities.”

China in 2021 announced rules to protect critical information infrastructure with stricter data security requirements.

It has recently also strengthened the enforcement of its data security and anti-espionage laws.

The chip war between Beijing and Washington escalated last year when the United States imposed restrictions on China’s access to high-end chips, chipmaking equipment and software used to design semiconductors.

Washington also blacklisted Chinese firms, including Micron rival Yangtze Memory Technologies Co Ltd.

The United States imposed targeted controls on the ability of domestic industry leaders to sell their products overseas.

The Netherlands and Japan — both leading manufacturers of specialised semiconductor technology equipment — have recently announced new restrictions on exporting certain products, but without naming China.

Beijing has slammed the moves as “US bullying tactics” and accused Washington of “technological terrorism”, vowing that such controls will only strengthen its resolve to achieve self-reliance in the sector.

Chips are the lifeblood of the modern global economy, powering everything from cars to smartphones, and they are forecast to become a $1 trillion industry globally by 2030.

Malo Pinatel, avec AFP

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