Exclusive | Tech war: China’s top server makers stop orders of memory modules containing Micron chips, sources say
- The halted orders highlight the immediate impact that China’s Micron ban has already dealt on the largest US memory chip maker
- Inspur, which is under US trade sanctions, and Lenovo are among the biggest buyers of Micron products
DRAM chips used in memory modules for servers are a commoditised component that is commonly supplied by Micron and Samsung Electronics, said the source, who declined to be named to protect relationships with clients.
It would take some time for the suppliers to make technical adjustments for newly-sourced alternatives, the person added.
Lenovo and Inspur did not respond to requests for comment.
The halted orders highlight the immediate impact that China’s ban, announced on Sunday, has already had on the United States’ largest memory chip maker.
Inspur, which is under US trade sanctions, and Lenovo are among the biggest buyers of Micron products, according to Bloomberg data.
The ban also affects memory module makers and third-party suppliers.
Chinese memory module manufacturers would have to change their product portfolios as a result of the Micron ban, Huang Leping, an analyst at Huatai Securities, was quoted as saying in a report on Monday by Chinese magazine Caijing.
Shenzhen Longsys Electronics, one of China’s top memory module producers, counted Micron as its top supplier between 2018 and mid-2021, with purchases from the Boise, Idaho-based company exceeding 33 per cent of total procurement contracts annually during the period.
It marked the first time a foreign semiconductor company was put under a cybersecurity review, and was seen as retaliation for Washington’s tightened export controls on advanced US semiconductor technology to China.
The CAC did not disclose which products it tested or the methods it used to test them.
Chinese foreign ministry spokeswoman Mao Ning said at a regular press conference on Wednesday that the country’s investigation into Micron was conducted in accordance with the law and the latest decision was based on facts.
The review “does not target any particular countries or regions, nor does China seek to exclude technologies or products from any specific country,” she added.