Micron Technology Double-Data-Rate Synchronous Random-Access Memory (SDRAM) chip
Tomohiro Ohsumi | Bloomberg | Getty Images
China’s chip shares rallied on Monday morning following Beijing’s announcement to bar some purchases of merchandise from U.S. reminiscence chipmaker Micron.
China’s Cyberspace Administration barred operators of “critical information infrastructure” in China from shopping for merchandise from the U.S. chip big following a safety overview performed by the Cyberspace Administration of China.
Chinese authorities mentioned Micron merchandise have failed its community safety overview, and cited “serious potential network security issues.” The agency poses a “major security risk” to China’s essential info infrastructure provide chain and impacts [its] nationwide safety,” a statement said.
Shares of Chinese chipmakers largely rose on Monday following the move: Hong Kong-listed Hua Hong Semiconductor rose as a lot as 3.14% on Monday, whereas SMIC rose 2.64%.
Other memory chip producers in mainland China such as GigaDevice Semiconductor and Ingenic semiconductor jumped 3.74% and 8.08% respectively.
In response to Beijing’s announcement, the U.S. Commerce Secretary Gina Raimondo told the Wall Street Journal, “We firmly oppose restrictions that don’t have any foundation in reality.” The commerce department will engage with the Chinese government to “element” its position and seek further clarity, he added.
Raimondo said the U.S. will engage with its key allies to address Beijing’s actions, and that such measures will cause “distortions of the reminiscence chip market.”
This comes because the U.S. reportedly urged South Korean chipmakers to not fill the shortfalls in China if Beijing’s ban comes into impact, the Financial Times reported.
Shares of South Korean chipmakers SK Hynix and Samsung Electronics, each Micron rivals, rose on Monday morning.
Source: www.cnbc.com”
