China’s chip stocks rallied on Monday morning following Beijing’s announcement to bar some purchases of products from U.S. memory chipmaker Micron .
China’s Cyberspace Administration barred operators of “critical information infrastructure” in China from buying products from the U.S. chip giant following a security review conducted by the Cyberspace Administration of China.
Chinese authorities said Micron products have failed its network security review, and cited “serious potential network security issues.” The firm poses a “major security risk” to China’s critical information infrastructure supply chain and affects [its] national security,” a statement said.
Shares of Chinese chipmakers largely rose on Monday following the move: Hong Kong-listed Hua Hong Semiconductor rose as much as 3.14% on Monday, while SMIC rose 2.64%.
