Micron is reportedly preparing to halt sales of server memory chips to data centers in mainland China, after its business there failed to recover from a 2023 cybersecurity ban. The move, reported by Reuters citing unnamed internal sources, has not been confirmed by Micron, but would mark a significant retrenchment from the world’s fastest-growing data center market.
According to the report, citing people familiar with the matter, Micron intends to cease shipments of its DRAM and other server-grade memory products to Chinese data centers, while continuing to supply the country’s automotive and smartphone sectors. The company would also continue to serve certain Chinese clients that operate data centers abroad, including Lenovo, the sources said. Micron declined to comment on the rumors but did acknowledge that the 2023 ban had impacted the division and that it “abides by applicable regulations where it does business.”
If the reports are true, Micron’s withdrawal from China’s data-center segment may allow Samsung and SK Hynix to further solidify their position in the Chinese server DRAM market, but recent US restrictions could make that difficult. Local players such as YMTC and CXMT have also expanded production under Beijing’s push for semiconductor self-sufficiency, though their technologies still lag in performance and yield. China’s data center investment linked to artificial intelligence surged to roughly 24.7 billion yuan ($3.4 billion) last year, according to Reuters.
Mainland China accounted for around 12% of Micron’s revenue last fiscal year, and most of its recent growth has come from AI infrastructure demand elsewhere. Micron has recently broken revenue records due largely in part due to a rebound in memory pricing and booming demand for HBM used in AI accelerators.
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