China chip stocks rally after Beijing says Micron is ‘security risk’
China’s chip stocks rallied on Monday morning following Beijing’s announcement to bar some purchases of products from U.S. memory chipmaker Micron. Beijing’s Cyberspace Administration barred operators of “critical information infrastructure” in China from buying products from Micron following a security review that cited “serious potential network security issues.” Chinese authorities said Micron products pose a “major security risk” to China’s critical information infrastructure supply chain and affect national security. Shares of Chinese chipmakers largely rose on Monday following the move: Hong Kong-listed Hua Hong Semiconductor rose as much as 3.14% while SMIC rose 2.64%.
Other memory chip producers in mainland China such as GigaDevice Semiconductor and Ingenic semiconductor jumped 3.74% and 8.08% respectively. In response to Beijing’s announcement, U.S. Commerce Secretary Gina Raimondo told the Wall Street Journal, “We firmly oppose restrictions that have no basis in fact.” The commerce department will engage with the Chinese government to “detail” its position and seek further clarity, he added. Raimondo said the U.S. will engage with its key allies to address Beijing’s actions, and that such measures will cause “distortions of the memory chip market.”
FAQs:
What is the reason behind China’s bar on some Micron products?
China’s Cyberspace Administration conducted a security review and found “serious potential network security issues” with Micron’s products, which pose a “major security risk” to China’s critical information infrastructure supply chain and affect national security.
How did Chinese chip stocks react to this move?
Chinese chip stocks largely rose on Monday following the move, with Hong Kong-listed Hua Hong Semiconductor rising as much as 3.14% while SMIC rose 2.64%. Other memory chip producers in mainland China such as GigaDevice Semiconductor and Ingenic semiconductor jumped 3.74% and 8.08% respectively.
What was the response of the U.S. Commerce Secretary to China’s move?
U.S. Commerce Secretary Gina Raimondo told the Wall Street Journal that the commerce department will engage with the Chinese government to “detail” its position and seek further clarity. Raimondo also said the U.S. will engage with its key allies to address Beijing’s actions and that such measures will cause “distortions of the memory chip market.”

Micron deemed as ‘security threat’ by China; China chip stocks surge in response.
Chinese chip stocks experienced a surge on Monday following the announcement by Beijing that it would prohibit some purchases of products from U.S. memory chipmaker Micron. The Cyberspace Administration of China conducted a security review and determined that Micron products failed its network security check. The company posed a “major security risk” to China’s critical information infrastructure supply chain, impacting the country’s national security, said Chinese authorities. Hua Hong Semiconductor in Hong Kong saw a rise in shares as high as 3.14%, while SMIC increased 2.64%. U.S. Commerce Secretary Gina Raimondo criticised the action stating that “We firmly oppose restrictions that have no basis in fact.” Meanwhile, South Korean chipmakers SK Hynix and Samsung saw a boost in shares, with reports suggesting they had been urged by the U.S. not to fill any potential shortfall caused by Beijing’s ban.