China Launches Cybersecurity Review Against Micron

The Cyberspace Administration of China ("CAC") in a brief statement on March 31, 2023 stated that it has launched a cybersecurity review of Micron's products sold in China pursuant to the National Security Law (2015), Cybersecurity Law (2016), and Cybersecurity Review Measures (the "Measures", 2021 rev.) to ensure the security of the supply chain of critical information infrastructure ("CII"), guard against cybersecurity risks caused by hidden product problems, and safeguard national security.¹ The US-based memory chip maker derives more than 10% of its revenue from China and reportedly said that it was staying in communication with the CAC and cooperating fully.

The Micron investigation is believed to be the first cybersecurity review proactively conducted by the CAC against a foreign company based on the Measures, which were first issued in April 2020 and then revised in December 2021 jointly by thirteen central government departments, including the CAC,