Micron Technology plans to halt shipments of server chips to data centers within China, after its business failed to rebound from Beijing’s 2023 ban on its products in critical infrastructure, according to two people familiar with the matter.
Micron became the first major U.S. chipmaker targeted by Chinese authorities in actions widely viewed as retaliation against Washington’s ongoing restrictions designed to curtail the progress of China’s semiconductor sector.
Following Micron’s ban, both Nvidia and Intel have faced similar accusations from Chinese regulators and an industry association regarding alleged security risks, though no official regulatory action has followed to date.
Despite the setback, Micron will continue supplying chips to two Chinese customers with substantial data center operations outside China—one of which is Lenovo, the individuals said. The company will also maintain sales to automotive and mobile device clients in China, which accounted for $3.4 billion, or 12% of Micron’s total revenue in the last fiscal year.
Asked about its withdrawal from the China data center market, Micron told Reuters it remains impacted by the ban and complies with all relevant regulations in jurisdictions where it operates.
China’s critical infrastructure ban has led Micron to miss out on the vast expansion of data center investment in the world’s second-largest server memory market. In 2024, investments by data centers in China surged ninefold to CNY 24.7 billion, based on government procurement data.
This vacuum has favoured rivals including Samsung Electronics, SK Hynix, as well as domestic memory makers YMTC and CXMT, who have been rapidly growing their presence with Beijing’s backing.
Despite its challenges in China, Micron continues to benefit from robust global demand for data centers and AI infrastructure, which has propelled the chipmaker to record quarterly revenues, according to one of the sources.
