Dramatic development!Micron reversed its position, and foreign media said it succumbed to pressure
Starting from ZTE and Huawei, the United States has continued to point the finger at China's science and technology enterprises, especially the leading enterprises in the integrated circuit industry such as SMIC, Shanghai Microelectronics, and Yangtze River Storage, and thousands of Chinese companies have been added to the list of American entities.
Apple, Qualcomm and other companies continue to grow steadily in the mainland market, but Micron is a special case. Now, a dramatic scene has occurred - Micron is starting to operate in reverse.
Over the years, many local US technology companies have come to the mainland to develop, such as Intel, Apple, Qualcomm, etc., all of which have occupied a considerable share of the mainland market and made considerable profits. As long as they operate according to the rules, we welcome them and never discriminate.
Of course, as an American company, they must comply with the relevant regulations of the United States, just like Apple's continuous transfer of production capacity, Intel, Qualcomm's suspension of cutting-edge chips such as **5G, etc., also support the United States' plan to improve local chip manufacturing.
However, they did not do anything behind our backs, at least not openly against us, made"Eat inside and out"things.
However, Micron is different from them. Micron also came to the mainland very early, and in 2018, revenue from the mainland accounted for 58%, and since then this proportion has been declining, and now it has dropped to 11%, but Micron did not find a reason for itself.
Micron and South Korea's Samsung, SK hynix are known as the global storage giants, Samsung and SK hynix have invested in the construction of wafer factories in the mainland in recent years, accounting for about half of the global production capacity, while Micron has only built a packaging and testing plant in Xi'an.
Building factories in the mainland is more conducive to competing for market share, but Micron responded to the call of the United States and continued to reduce its business in the mainland.
As early as the beginning of last year, Micron closed its DRAM design and development center in Shanghai and planned to transfer core technical personnel to the United States. Micron also attributed the decline in mainland market share to the development of the domestic storage industry.
For many years, foreign companies have monopolized the storage industry and arbitrarily raised the top of the grid from time to time. In order to break the foreign monopoly, Yangtze River Storage and Changxin Storage have quietly strengthened self-inspection, continuously improved their technical level, and also gained some share, but they are much worse in comparison.
Even so, it was still targeted by Micron, who repeatedly pressured the United States to stop the development of China's domestic storage.
Over the past five years, Micron has even spent $9.54 million on lobbying. Under Micron's operation, Fujian Jinhua is basically paralyzed, and YMTC has also been added to the Entity List by the United States, and the new U.S. export control regulations also list storage restriction rules.
Of course, we can no longer tolerate companies like Micron"Eating in the bowl and smashing in the pot"。As a result, at the end of March, the Cyberspace Administration of China announced that it would conduct a cybersecurity review of Micron's products in China, and more than a month later, it announced that the company's cybersecurity review was unqualified.
At the same time, operators of critical information infrastructure were forced to stop buying Micron's products, and the bitter fruit was Micron's turn.
It's not just a casual talk, it's a restriction on sales. The effect soon appeared, Lenovo, Inspur and other large domestic server manufacturers have asked the company to stop using Micron chip products, and the scope is still expanding.
While at first glance Micron's revenue from the mainland is only 11 percent, if direct sales and indirect sales through distributors are included, they would account for a quarter of Micron's global revenue, or 76 percent based on last year's revenue$900 million.
Even if we don't ban sales altogether, it will affect at least half of Micron's customer revenue, which is 38$500 million.
The impact on Micron cannot be small, the key is that the ** of memory chips continues to decline, and Micron itself is facing great pressure to reduce performance. If Micron can't solve this problem, it may also lose the mainland market, so the blow will be even greater.
Because of this, Micron announced in June this year that it would invest 4.3 billion yuan to modernize and expand its Xi'an packaging and testing plant, which is considered a gesture of goodwill to China.
Some time ago, according to ** news, the chairman and CEO of Micron visited our country and directly contacted the Ministry of Commerce. Clearly, Micron wants to solve the problem through communication. In this regard, some foreign media directly commented that Micron is still soft.
It's nothing short of dramatic, and Micron has already begun to do the opposite. Previously, after the results of the review were announced in our country, Micron did not take any action and continued to rely on the United States, trying to solve the problem by applying pressure, but in the end it seemed that no effect was achieved.
Although the United States once intervened and asked South Korea's Samsung and SK hynix not to occupy the market left by Micron, in order to put pressure on us. But then it extended the exemption period for TSMC and South Korean companies with factories in the mainland, which is obviously very important for Micron.
Therefore, Micron can only save itself by investing in expansion and getting together to communicate, but this does not seem to be enough to change Micron's situation!