{"id":5571,"date":"2025-10-17T06:43:21","date_gmt":"2025-10-17T06:43:21","guid":{"rendered":"https:\/\/prepsaret.com\/news\/?p=5571"},"modified":"2025-10-17T06:43:21","modified_gmt":"2025-10-17T06:43:21","slug":"micron-to-halt-server-chip-sales-to-chinese-data-centers","status":"publish","type":"post","link":"https:\/\/prepsaret.com\/news\/micron-to-halt-server-chip-sales-to-chinese-data-centers\/","title":{"rendered":"Micron to Halt Server Chip Sales to Chinese Data Centers"},"content":{"rendered":"

Micron has decided to end the supply of its server chips to data centers in China after efforts to recover from a 2023 government ban on its products proved unsuccessful, according to two individuals familiar with the matter.<\/span><\/p>\n

The ban made Micron the first American semiconductor company to be directly targeted by Beijing, a move widely seen as retaliation for Washington\u2019s restrictions on China\u2019s chip industry.\u00a0<\/span><\/p>\n

Since then, Nvidia and Intel have also faced scrutiny from Chinese authorities and industry groups over alleged security risks, though no formal regulatory measures have been taken.<\/span><\/p>\n

Related story: <\/b>FCC Steps Up Crackdown on Banned Chinese Electronics<\/span><\/a><\/p>\n

Lenovo Remains a Key Client<\/b><\/h2>\n

Despite withdrawing from the Chinese data center market, Micron will continue to supply chips to two major Chinese clients that operate data centers abroad \u2014 one being the computer manufacturer Lenovo, sources confirmed.<\/span><\/p>\n

Micron generated $3.4 billion \u2014 about 12% of its total annual revenue \u2014 from mainland China last fiscal year. One of the sources noted that the company will still sell to customers in China\u2019s automotive and mobile phone sectors.\u00a0<\/span><\/p>\n

When asked about the decision to exit the local data center business, <\/span>Micron <\/span><\/a>told Reuters that the division had been \u201cimpacted by the ban\u201d and that it complies with all applicable laws wherever it operates. Lenovo did not immediately respond to a request for comment.<\/span><\/p>\n

Trade and technology tensions between the U.S. and China have intensified since 2018, when then-President Donald Trump imposed tariffs on Chinese imports.\u00a0<\/span><\/p>\n

That same year, the U.S. accused Huawei of posing national security risks and later imposed sanctions.\u00a0<\/span><\/p>\n

Huawei has denied the allegations, as have <\/span>Nvidia<\/span><\/a>, Intel, and Micron, which reaffirmed the safety of its products during China\u2019s 2023 investigation.\u00a0<\/span><\/p>\n

The U.S. currently <\/span>sanctions <\/span><\/a>hundreds of Chinese entities, while Beijing has taken far fewer countermeasures due to its reliance on foreign technology.<\/span><\/p>\n

Missing Out on China\u2019s AI-Driven Growth<\/b><\/h2>\n

China\u2019s ban on Micron\u2019s chips in critical infrastructure has effectively shut the company out of the nation\u2019s booming data center sector \u2014 the world\u2019s second-largest for server memory.\u00a0<\/span><\/p>\n

The gap has been filled by competitors such as Samsung Electronics , SK Hynix, and local players YMTC and CXMT, all expanding rapidly with state support.<\/span><\/p>\n

Investment in Chinese computing data centers climbed to 24.7 billion yuan ($3.4 billion) last year, a ninefold increase, according to Reuters\u2019 review of procurement data.<\/span><\/p>\n

Nonetheless, Micron has offset these setbacks with surging global demand for AI-driven data centers, helping it post record quarterly revenue. The company\u2019s China-based data center team includes over 300 employees, though the potential job impact remains unclear.<\/span><\/p>\n

In August, Micron also reduced its workforce in China\u2019s flash storage division after halting mobile NAND development globally. Yet, it continues to grow its packaging facility in Xian.<\/span><\/p>\n

\u201cWe have a strong operating and customer presence in China, and China remains an important market for Micron and the semiconductor industry in general,\u201d Micron said in its statement to Reuters.<\/span><\/p>\n

Read next:<\/b> China-Linked Hackers Accused in Major F5 Cybersecurity Breach<\/span><\/a><\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

Micron has decided to end the supply of its server chips to data centers in China after efforts to recover from a 2023 government ban on its products proved unsuccessful, according to two individuals familiar with the matter. The ban made Micron the first American semiconductor company to be directly targeted by Beijing, a move […]<\/p>\n","protected":false},"author":5,"featured_media":5573,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[333],"tags":[],"class_list":["post-5571","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-technology-news"],"yoast_head":"\nMicron to Halt Server Chip Sales to Chinese Data Centers<\/title>\n<meta name=\"description\" content=\"Micron is halting server chip sales to Chinese data centers, escalating U.S.-China tech tensions and impacting the global chip market.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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