Beijing, 17 October 2025 – U.S. semiconductor manufacturer Micron Technology Inc. will withdraw from China’s server chip business following a government ban earlier this year that restricted sales to critical infrastructure operators.
The Idaho-based chipmaker confirmed it would gradually phase out its data-centre memory operations in China, redirecting resources toward Southeast Asia and the U.S. Micron’s exit underscores the mounting challenges faced by American tech firms amid escalating U.S.–China tech tensions and Beijing’s push for supply chain self-sufficiency.
The move follows China’s May 2025 ban on Micron products for “national security reasons,” effectively blocking sales to the country’s telecom and cloud operators. Analysts say the decision could cost Micron up to US$3 billion in annual revenue, as China once accounted for roughly 10% of its global business.
Despite the setback, Micron stated it remains committed to serving Chinese consumer electronics clients outside the restricted categories and will continue collaborations in markets not affected by the ban.
Industry watchers see the development as another flashpoint in the global semiconductor realignment, where chipmakers diversify production to ASEAN markets such as Malaysia, Singapore, and Vietnam.
As geopolitical and regulatory pressures reshape the tech landscape, Micron’s China retreat may accelerate new investment flows into Asia’s emerging semiconductor hubs — particularly Malaysia’s Kulim High-Tech Park and Singapore’s Tampines Wafer Corridor, both now key nodes in the post-China supply chain shift.
