Micron warns of bigger revenue hit from China ban

Micron said the move had put at risk about half of its revenue from China-headquartered companies

Published - June 17, 2023 10:57 am IST

File photo of the Micron logo

File photo of the Micron logo | Photo Credit: REUTERS

Memory chipmaker Micron Technology on Friday warned of a bigger hit to global revenue from a Chinese ban on sale of its chips to key domestic industries, sending the company's shares down more than 2% in early trading.

Micron said the move had put at risk about half of its revenue from China-headquartered companies, which equates to a low-double-digit percentage of its total revenue.

The company had previously forecast a hit in the low-single to high-single digit percentage.

China's cyberspace regulator in May said that Micron, the biggest U.S. memory chipmaker, had failed its network security review and that it would block operators of key infrastructure from buying from the company.

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Several customers, including mobile manufacturers, are being contacted by representatives of the government in China concerning the future use of Micron products, the company said.

Micron's revenue from companies headquartered in mainland China and Hong Kong, including direct sales as well as indirect sales through distributors, is about a quarter of the chip company's total revenue.

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