Micron to Exit China’s Server Chip Market After Beijing Ban

US chipmaker Micron Technology plans to stop supplying server chips to data centers in China. The decision follows a 2023 ban by Beijing on Micron’s use in Chinese infrastructure. 

The ban hit Micron’s business hard. China accounted for about 12% of its revenue ($3.4 billion) last fiscal year.  Despite this, Micron will continue selling memory chips to Chinese customers with data-centre operations abroad. It will also keep supplying the automotive and smartphone industries within China. 

Analysts say this retreat underscores the growing tensions in the US-China tech rivalry. As Micron steps back, rivals such as Samsung Electronics, SK Hynix and Chinese firms like YMTC are gaining ground in China’s fast-expanding AI and data-centre markets. 

Micron said it “remains committed to the Chinese market,” and will maintain its manufacturing and packaging operations in the country. 

In short: Micron is scaling down its presence in China’s server chip sector, shifting focus away from a key market amid geopolitical headwinds and setting the stage for new leadership by competitors.