Chinas sanctions on Micron have come back like a boomerang

China’s sanctions on Micron have come back like a boomerang – the Chinese SSD maker has suffered

While analysts are wondering to what extent the Chinese authorities’ ban on the use of Micron Technology products in critical information infrastructures will affect the business of the American company and its competitors, some sources report the first negative consequences of the decision for the Chinese business Partner of the American memory supplier.

    Image source: Memblaze

Image source: Memblaze

At least the southern edition China Morning Post reports that Chinese enterprise-class solid-state drive maker Memblaze has decided to cancel the public offering of its own shares on the Shanghai Stock Exchange just three days before the official release of the results of the Chinese regulators’ investigation into Micron Technology .

These moves by Memblaze reflect how Beijing’s actions against Micron, including a virtual ban on domestic sales of its products, could affect the business of local companies. And this example is not the only one. Leading Chinese server manufacturers, including Inspur Group and Lenovo Group, have asked suppliers to stop shipping modules with Micron memory chips.

Memblaze is one of Micron Technology’s key customers in the Chinese market. The company reportedly stocked tens of millions of dollars worth of US manufacturer’s memory chips. Memblaze, which has been supplying solid-state drives since 2011, buys memory from several companies for it, and Micron Technology was just one of them. Apparently, the Chinese manufacturer retains the ability to sell its Micron-based storage solutions to those Chinese customers who don’t use them in critical infrastructure locations. Memblaze’s management includes Chinese nationals with experience in Micron Technology’s China representative office, indicating close partnerships between the companies. In May 2021, Micron Semiconductor Asia even became the owner of a 1.37% stake in Memblaze.

About the author

Dylan Harris

Dylan Harris is fascinated by tests and reviews of computer hardware.

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