Great Leap Nowhere: The Challenges of China’s Semiconductor Industry
War on the RocksFeb 24, 2023
A PRC regulator has announced that US computer chip manufacturer Micron has been banned from use in domestic infrastructure projects.
In a statement, the Cyberspace Administration of China announced that Micron products — which include semiconductors and solid-state hard drives — pose "serious network security risks," and that "operators of critical information infrastructure" should stop purchasing from Micron.
China lacks the domestic capacity to produce high-tech chips for its military. Beijing is further isolating itself from the global semiconductor industry by lashing out at one of America's biggest chipmakers. Despite the massive cash flows into the industry, there is little evidence of a worthy payoff due to scientific and institutional constraints. This move against Micron is a nationalistic blunder that will harm the country in the long run.
The Micron case is an isolated incident that will not affect China's willingness to do business with the world or its advanced technology industries. Micron failed a routine national security review, as Beijing seeks to have some of the most secure cyberinfrastructures in the world. China welcomes businesses in all industries, provided they comply with China's prudent regulations.