Chinese chip stocks rose Monday morning after the Chinese government announced a ban on some purchases from US memory chip makers. micron.
China’s “Critical Information Infrastructure” operators have been barred from purchasing products from US semiconductor giants following a security review conducted by the China Cyberspace Administration. China Cyberspace Administration.
Chinese authorities announced that Micron’s products had failed a network security review, noting that “there are serious potential problems with network security.”The company poses a ‘significant security risk’ to and affects China’s critical information infrastructure supply chain. [its] national security,” he said in a statement.
The Chinese chip maker’s shares rose sharply on Monday on the move: Hong Kong listing Huahong Semiconductor It rose as much as 3.14% on Monday, SMIC 2.64% increase.
Other mainland Chinese memory chip makers such as Gigadevice Semiconductor and Ingenic Semiconductor also rose 3.74% and 8.08%, respectively.
In response to the Chinese government’s announcement, U.S. Commerce Secretary Gina Raimond told The Wall Street Journal that she “resolutely opposes any regulations that have no factual basis.” He added that the commerce ministry would work with the Chinese government to “detail” the position and seek further clarification.
Raimond said the United States intends to work with key allies to address Beijing’s actions and that such measures would cause “distortion in the memory chip market.”
This comes as the United States has reportedly asked South Korean chip makers not to make up the shortfall in China if the Chinese government’s ban takes effect. The Financial Times reported.
Shares of Micron’s rivals, South Korean chip makers SK Hynix and Samsung Electronics, rose Monday morning.