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- The White House urged South Korea not to fill any market gap in China if Beijing bans Micron Technology, Inc MU from selling chips.
- The U.S. has asked Seoul to encourage Samsung Electronics Co Ltd SSNLF and SK Hynix to hold back from boosting sales to China if it bans Micron from selling under an ongoing investigation, the Financial Times reports.
- The U.S. requested as President Yoon Suk Yeol prepared to travel to Washington for a state visit on Monday.
- Also Read: Micron’s Sturdy Moat: Analysts Foresee Negligible Impact from China Actions Thanks to US Chipmaker Ties
- In April, China launched a national security review into Micron, one of the three dominant players in the global Dram memory chip market, alongside Samsung and SK Hynix.
- Mainland China and Hong Kong generated 25% of Micron’s $30.8 billion in 2022 revenue.
- Memory chip manufacturers are already under pressure due to an industry glut that, in the first quarter of 2023, triggered a 25% decline in the price of Dram chips, which serve everything from TVs to phones.
- In December, the U.S. put Chinese memory chip producer Yangtze Memory Technologies Co on its “entity list,” barring companies from exporting American technology to the nascent Micron rival without a hard-to-obtain license.
- Price Action: MU shares traded lower by 2.26% at $59.75 premarket on the last check Monday.
- Photo by Body Stock and Dragon Claws via Shutterstock
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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