Micron Technology (NASDAQ:MU) shares fell more than 4% on Friday, following an announcement by China’s Cyberspace Administration that it will conduct a cybersecurity review of Micron’s products sold in China.
The purpose of the review is to safeguard the security of China’s key information infrastructure supply chain, prevent potential network security risks caused by undisclosed product problems, and maintain national security.
Last year, Micron announced plans to close its DRAM design operations in Shanghai and relocate them to the U.S. or India, citing concerns over government-backed competition in China. In its report for the year 2021, Micron voiced worries about the rising competition it is confronting due to substantial investments made by the Chinese government and state-owned or related organizations in the semiconductor industry. These investments are aimed at advancing China’s national policy objectives, thereby causing concern for Micron.