Micron Technology (MU.US) shares are losing more than 6% ahead of today's session opening after China's cybersecurity regulator said the company's products failed a cybersecurity review in the country. As reported in Beijing, Micron products sold in China caused security risks to the IT infrastructure of Chinese supply chains. This means that the use of the company's products will be banned from key infrastructure projects in the world's second-largest economy.
The whole affair has to do with the investigation into the security of Micron products launched by the CAC (China Cyberspace Administration) six weeks ago and the ongoing US-China technology war.Â
Start investing today or test a free demo
Open account Try demo Download mobile app Download mobile appThis information alone puts pressure on the company's shares in the short term. Nonetheless, it is worth remembering that the company announced last week that it would invest around 500 billion yen (US$3.6 billion) in technology development in Japan, which may suggest that the company is looking to move its manufacturing centres to other corners of the world.
Map showing all of Micron's research, administration and operations centers. Source: Bloomberg
Micron itself, however, is not as dependent on China as other key US companies. Source: Bloomberg
Micron Technology (MU.US) share price chart, D1 interval. The worrying news from China took the company's shares down to the levels of key support marked by local peaks, which were tested as many as 7 times! Source: xStation 5
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr SÄ…dowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
