"China's US Micron Regulation Sends Warning Signal to Samsung and SK Hynix"

SCMP "Warning Not to Follow US Measures"
Qin Gang, Foreign Minister, Emphasizes 'Right Choice' to Japan

As China begins regulating the U.S. memory semiconductor company Micron Technology, this move is being seen as a warning signal to South Korea's Samsung and SK Hynix. It implies that similar measures could be taken if they align with the U.S.'s anti-China semiconductor cooperation.

According to the Hong Kong South China Morning Post (SCMP) on the 2nd, Micron, the largest memory chip manufacturer in the U.S., is the first overseas semiconductor company to undergo an 'Internet Security Review' by China's Cyberspace Administration (CAC). Previously, the CAC announced that it would conduct an internet security review of Micron's products sold in China to ensure the safety of the core information infrastructure supply chain and prevent potential security risks. However, it did not specify the background or duration of the review.

This measure comes amid the U.S.'s high-intensity regulations that ban the sale of advanced semiconductor equipment to Chinese semiconductor manufacturers and demand Japan and the Netherlands join export restrictions against China. SCMP evaluated this by stating, "The CAC's review will escalate tensions between China and the U.S."

China's regulatory moves against U.S. companies are also interpreted as a 'warning signal' to neighboring countries such as South Korea and Japan. Wang Lipu, an analyst at semiconductor advisory firm ICwise, said, "South Korea, China, and Taiwan are members of the U.S.-led Chip 4 alliance," adding, "South Korea will particularly pay close attention to the CAC's security review of Micron." Wang further explained, "This review sends a warning to South Korean memory chip manufacturers Samsung Electronics and SK Hynix, which still have manufacturing facilities in China, not to follow U.S. measures."

There are also forecasts that similar measures could be directed at the Netherlands. The Netherlands, after restricting exports of extreme ultraviolet (EUV) lithography equipment used in advanced processes to China, announced earlier last month that it would expand the scope of export-restricted items. Wang said, "Such reviews could also apply to the Netherlands, which has restricted exports of advanced chip manufacturing equipment," explaining, "(The export restrictions) have created a strong alliance aimed at weakening China's semiconductor capability enhancement."

If the review of Micron is prolonged, the situation is expected to become more complicated. Typically, the CAC's internet security review takes at least 30 days but can extend depending on circumstances. In fact, the CAC's security review of Chinese ride-sharing company Didi Chuxing took about a year from the start to the imposition of fines. Feng Qiong, a lawyer specializing in the semiconductor field, told SCMP, "If security issues are found with Micron's products, various penalties or restrictions could be imposed," adding, "Fines would be the mildest warning." Feng explained, "This move reflects government officials' attitude of showing the carrot of market openness while also signaling that if we (China) are angered, we can retaliate with a stick."

China also indirectly criticized Japan's participation in semiconductor export restrictions against China during the recent China-Japan foreign ministers' meeting, urging restraint in related actions. Chinese Foreign Minister Qin Gang cited a passage from Confucius' Analects (Wei Ling Gong chapter), "Do not impose on others what you yourself do not desire" (己所不欲 勿施於人, Kiso Buryoku Mushioin), telling Japanese Foreign Minister Yoshimasa Hayashi, "You must make the right choice that is not shameful to history and the people."

This content was produced with the assistance of AI translation services.