On May 21st, the news just broke that Micron Technology, the world’s third-largest storage chip giant and the largest storage chip company in the United States, has released the results of its network security review for products sold in China: “Did not pass.”
Announcement from the Cyberspace Administration of China
The following is the full text of the announcement from the Network Security Review Office under China’s National Internet Information Office:
Recently, the Network Security Review Office conducted a network security review on Micron Technology’s products sold in China in accordance with the law.
The review found that Micron Technology’s products have serious potential security risks, which pose significant threats to our country’s critical information infrastructure supply chain and national security. Therefore, based on relevant laws and regulations such as the Cybersecurity Law, the Network Security Review Office has concluded that Micron Technology’s products do not pass network security reviews. Operators of critical information infrastructure within China should stop purchasing Micron Technology’s products.
This network security review of Micron Technology aims to prevent potential harm to our country’s critical information infrastructure caused by product cybersecurity issues and is a necessary measure to safeguard national security. China firmly promotes high-level opening up to foreign countries. As long as foreign companies and platforms comply with Chinese laws and regulations, they are welcome to enter the Chinese market.
Previously on March 31st this year, The Network Security Review Office announced it would conduct a network security review on Micron Technology’s products sold in China.
Stop Purchasing Micron!
In a recent turn of events, the Office of Cybersecurity Review diligently scrutinized Micron Technology’s endeavors in China, conducting a comprehensive assessment of its product line through the lens of cybersecurity.
The scrutiny unearthed rather grave vulnerabilities lurking within Micron’s products, their impact reverberating throughout China’s intricate web of critical information infrastructure. Casting a shadow on national security, these vulnerabilities were deemed substantial enough to pose significant risks to the country’s supply chain. Hence, in adherence to the legal framework stipulated in the Cybersecurity Law and other pertinent regulations, the Office of Cybersecurity Review reached the unequivocal decision of withholding approval for Micron’s products via the cybersecurity review process. Consequently, the operators responsible for the operation of China’s crucial information infrastructure are obliged to discontinue any further procurement of Micron’s offerings.
Delving into the rationale behind this meticulous examination of Micron’s product lineup, the overarching objective was to staunchly shield the nation’s critical information infrastructure from the perils lurking within cybersecurity blind spots. Safeguarding national security called for the implementation of these imperative measures. In line with China’s resolute commitment to fostering an elevated degree of openness to international cooperation, it warmly embraces enterprises from across the globe and a diverse array of platform-based product services, inviting them to explore the vast opportunities present within the Chinese market. Naturally, this welcome extends solely to those who diligently abide by the laws and regulations set forth by the Chinese authorities.
The Operator of Critical Information Infrastructure should STOP Purchasing Micron
The directive mandating operators of critical information infrastructure to halt their procurement of Micron products implies that Micron finds itself excluded from the realm of policy-driven purchases, with far-reaching implications that extend even to enterprise-level procurement. This harbinger heralds a looming descent for Micron’s market share in China, precipitating a seismic shift within the industry landscape.
Micron, a titan in its own right: The year 2022 witnessed the stalwart’s revenue soaring to unprecedented heights, culminating in a staggering $30.758 billion. Yet, a closer examination reveals a captivating subplot—China, the behemoth’s second-largest revenue generator, contributed a formidable $3.311 billion to this grand tapestry, a resounding testament to the nation’s insatiable appetite for technological prowess. Micron’s sway over the Chinese market remains an indomitable force, capturing a remarkable 11% of the revenue pie.
Delving into the very fabric of Micron’s revenue streams, we unravel a tale woven with remarkable intricacy. DRAM, the cornerstone of Micron’s product offerings, claims a lion’s share of the revenue throne with an awe-inspiring $22.386 billion, a resplendent testament to its enduring popularity. Trailing behind but by no means inconsequential, NAND Flash asserts its dominance with a formidable $7.811 billion, solidifying its role as the stalwart’s trusted comrade. Yet, these pillars of technological prowess are but the tip of the iceberg. Micron’s captivating symphony of success also resonates with the likes of 3D XPoint memory and NOR, their contributions amounting to an impressive $561 million. Such is the multifaceted nature of Micron’s kingdom.
Venturing beyond the borders, Micron’s global prominence becomes a narrative of awe. In the realm of DRAM, it commands an enviable position as the third-largest player, boasting an illustrious 25% market share. Meanwhile, within the NAND arena, Micron has masterfully maneuvered itself into the hallowed halls of the top five, capturing an impressive 12% slice of the global market. But there is yet another accolade that sets Micron apart—a testament to its unwavering dedication to excellence. The realm of automotive DRAM, a stage that demands the utmost precision and reliability, bears witness to Micron’s unrivaled dominance. A veritable titan, Micron claims an astonishing 45% of the market share, ensuring its place as the vanguard of innovation within this critical sphere.
As the tides of change surge, the ramifications of the directive reverberate throughout Micron’s future prospects in China. Like an unfolding drama, the curtain rises on a pivotal moment, where Micron finds itself standing at the precipice of a formidable challenge. The exclusion from policy-driven procurement casts a shadow of uncertainty, permeating the corridors of enterprise-level decision-making. The ripples of this decision extend far beyond the realm of mere numbers and statistics, giving rise to a narrative of resilience and adaptability.
Micron, a name synonymous with technological prowess, has carved its place in the annals of history. The year 2022 etched a chapter of remarkable growth, with revenue soaring to unprecedented heights. Amidst this symphony of success, China emerged as a key player, a pivotal contributor to Micron’s grand tapestry. The allure of Micron’s offerings captivated the Chinese market, driving revenue to the tune of $3.311 billion, a testament to the nation’s insatiable thirst for cutting-edge innovation. Yet, as the winds of change shift, a storm looms on the horizon.
The towering revenue figures tell only part of the story. Behind the scenes, an intricate dance of product structure unfolds, showcasing the delicate balance of Micron’s portfolio. DRAM, the steadfast pillar of Micron’s empire, commands the lion’s share of the revenue throne, a testament to its enduring popularity. With an unwavering stride, it claims a staggering $22.386 billion, leaving an indelible mark on the landscape. And yet, it is the symphony of NAND Flash that harmonizes with DRAM, weaving a tale of symbiotic coexistence. A formidable force in its own right, NAND Flash contributes a notable $7.811 billion, establishing its role as a trusted comrade. Together, they form the bedrock of Micron’s dominion, defining its legacy in the realm of memory technologies. But the story doesn’t end there.
Venturing beyond borders, Micron’s global standing assumes center stage. In the captivating drama of the DRAM market, Micron claims its place as a resolute contender, securing the coveted third position. With an enviable market share of 25%, it stands shoulder-to-shoulder with industry giants, leaving an indelible mark on the landscape. Meanwhile, in the realm of NAND, Micron continues its ascent, a formidable presence among the top five players. Capturing 12% of the global market, it proves that its prowess knows no bounds. And there, in the realm of automotive DRAM, where precision and reliability reign supreme, Micron ascends to unprecedented heights. With an awe-inspiring 45% market share, it assumes the mantle of global leadership, blazing a trail of innovation.
But now, the tempest of change brews on the horizon. The directive barring Micron from the realm of policy-driven procurement sets the stage for a battle of resilience and adaptability. The reverberations will echo through the halls of enterprise decision-making, where the fate of Micron’s China market share hangs in the balance. As the curtain falls on one act and rises on another, the narrative of Micron’s journey in China takes an unforeseen twist, leaving us eagerly anticipating the next chapter in this ever-evolving tale of technology, growth, and resilience.
About Micron
In 1978, Micron Technology, Inc. was established as a global entity with a presence across the world. It boasts a workforce of 26,000 employees worldwide, with 10,000 based in Asia. In China, Micron Technology has established marketing offices and an integrated circuit design center in Shanghai, as well as marketing offices in Beijing and Shenzhen. These offices are dedicated to providing exceptional services to clients in Shanghai, Beijing, Shenzhen, Fujian, and other provinces and cities.
From 1998 to 2002, Sun Microsystems purchased DRAM memory chips worth $2 billion.
In September 2005, after conducting comprehensive evaluations of more than 10 cities in China, Micron Technology finalized its decision to establish a semiconductor factory in Xi’an. This project encompasses chip module assembly and chip packaging and testing, with a total investment of $250 million and export potential exceeding $500 million, creating over 2,000 job opportunities.
On March 21, 2007, Micron Technology’s factory was completed in the Xi’an High-tech Zone. It is a wholly foreign-owned enterprise and one of the largest foreign investments in Shaanxi Province. The facility primarily focuses on testing and packaging Micron Technology’s semiconductor products.
In May 2022, Micron Technology’s President and CEO, Sanjay Mehrotra, announced the introduction of EUV technology at the Taichung fab 2022.
On September 2, 2022, Micron Technology announced its plan to invest approximately $15 billion in the next 10 years to establish a memory chip manufacturing plant in Boise, Idaho.
Micron Technology stated that this will be the first new memory chip manufacturing plant built on U.S. soil in 20 years and the largest private investment project in the history of Idaho. The company anticipates creating a total of 17,000 job opportunities by 2030, with 2,000 jobs directly attributed to Micron Technology.
On October 27, 2022, Micron Technology agreed to join the Open Innovation Platform 3D Fabric Alliance to drive the development of 3D semiconductors.
On December 19, 2022, Micron Technology and AMD announced the establishment of a joint server laboratory in Austin, focused on reducing server memory validation time and conducting collaborative workload testing during product validation and release.
