Micron Ends Server Chip Sales to China Data Centers After 2023 Ban

Micron Technology is halting sales of its server memory chips to data centers in mainland China following a 2023 ban by the Chinese government on its products for use in critical infrastructure, which severely impacted its local business. The ban was seen as retaliatory against Washington's export restrictions aimed at China's semiconductor industry, making Micron the first major U.S. chipmaker targeted by Beijing. Despite this, Micron will continue supplying certain Chinese clients with significant data center operations outside of China, including Lenovo, and will maintain sales to automotive and smartphone sectors within China. The company's withdrawal from China's data center chip market benefits rivals such as Samsung, SK Hynix, and domestic Chinese producers YMTC and CXMT, who have expanded their market share with state support. Micron's China business had generated $3.4 billion or 12% of its total revenue in the last fiscal year, but ongoing trade tensions and security accusations have hindered its growth in the world's second-largest server market. The company remains financially strong overall, continuing to invest in chip packaging facilities in China while abiding by applicable regulations where it operates.