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China has prohibited U.S. chipmaker Micron from taking part in important infrastructure projects, claiming that the company poses a threat to the country's security.

The Chinese Cyberspace Administration of China (CAC) stated in a translated statement that the review found that Micron's products have serious network security risks. As per the statement, these pose significant security risks to China's critical information infrastructure supply chain, affecting China's national security.

The CAC did not disclose any additional information regarding Micron's violations, but it did say that Chinese owners of vital infrastructure had been told to stop purchasing Micron items, including chipsets, hard drives, and RAM modules.

China accounted for US$3.3 billion of Micron's full-year 2022 sales, which came to US$30.7 billion, making it the largest chip manufacturer in the country.

Further, the company also explained that they are evaluating the conclusion and assessing their next steps.

“We look forward to continuing to engage in discussions with Chinese authorities,” they added.

At a time when tensions between China and the U.S. are rising, this is China's first significant action against a U.S. technology business. It is similar to the U.S. government's ban on the same grounds against the equipment vendor Huawei.

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