Shares of Micron Technology, Inc. (NASDAQ:MU) fell sharply in premarket trading on Monday after China announced a ban on the U.S. companies products.
The Cyberspace Administration of China announced on Sunday that a network security review of Micron’s products sold in China found that they have relatively serious potential network security issues.
These pose a major security risk to China’s critical information infrastructure supply chain and affect its national security, the agency said. It also called upon operators involved in domestic critical information infrastructure projects to stop purchasing Micron products.
Idaho, Boise-based Micron sells computer memory and computer data storage including dynamic random-access memory, flash memory, and USB flash drives.
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Shares of Micron fell 5.57% to $64.37, according to Benzinga Pro data.
Other chipmakers moved in sympathy, although there is no explicit announcement from China regarding their products.
Advanced Micro Devices, Inc. (NASDAQ:AMD) and Nvidia Corp. (NASDAQ:NVDA), which have big exposure to China, fell 1.41% and 1.36%, respectively. Intel Corp. (NASDAQ:INTC) declined a more modest 0.57%.
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