China's ban on the use of U.S.-based Micron Technology's chips in certain sectors, announced Sunday, is a stark reminder of risks facing the global chip industry as it braces for escalating Sino-U.S. trade tensions.
China's move against Micron, the biggest U.S. memory chipmaker, was widely seen as retaliation for Washington's efforts to restrict Beijing's access to key technology. It came just a day after the Group of Seven rich nations agreed they would look to "de-risk, not decouple" from China, and as Washington pressures its allies to join it in restricting chip equipment exports to China.
Micron, which makes DRAM and NAND flash memory chips, is the first U.S. chipmaker to be targeted by Beijing after Washington unveiled over the past year a series of export controls to block certain chips and chipmaking technologies being used to advance China's military capabilities.