Micron Chief ‘Meets With Chinese Government’ Amidst Sanctions

Micron president and chief executive Sanjay Mehrotra has reportedly visited China and met with senior government figures, amidst Chinese sanctions on the company’s products that are seen as a response to US semiconductor export controls.

Mehotra met with officials from China’s Ministry of Commerce last week, according to a report from the state-controlled Chinese newspaper National Business Daily, which did not indicate what was discussed.

The report comes two months after the Cyberspace Administration of China in May banned Micron products from being used by mainland operators of critical information infrastructure, saying the US company had failed to pass a security review.

The move was largely seen as a response to export controls imposed by the US last October that prevent Chinese companies from buying advanced semiconductors and high-end chipmaking equipment.

Tech tensions

The report is an indicator of the continued importance of the Chinese market to US tech firms, both as a market and as a part of the supply chain.

Micron has said a quarter of its revenues come from Hong Kong and mainland China.

A month after the regulatory ban the firm announced plans to invest $600 million (£467m) to upgrade its chip packaging plant in Xian, saying at the time the move showed its commitment to operations in the country.

Intel chief executive Pat Gelsinger visited China earlier this month as the company launched Gaudi2, an accelerator chip for AI applications that is not covered by current US export measures.

Supply chain

Local media reports said Gelsinger visited partners including Beijing-based New H3C Group and Zhengzhou-based xFusion Technologies, which are both expected to release AI servers using Gaudi2 accelerators.

He  also reportedly visited Intel’s chip packaging and test plant in Chengdu to mark the company’s 20th anniversary of operations in the city, where he said in an address that the plant plays a critical role in Intel’s global supply chain.