Micron Technology Inc (NASDAQ:MU) plans to halt sales of its server memory chips to data centres in mainland China, according to Reuters, marking a retreat from a market that once accounted for 12% of its global revenue.
The move follows a 2023 Chinese government ban on the company’s products for use in critical infrastructure, which has crippled its local business.
Micron, the first major US chipmaker targeted by Beijing in retaliation for Washington’s export curbs, has struggled to regain traction in the world’s second-largest server market.
Rivals Samsung Electronics, SK Hynix and domestic producers such as YMTC have since expanded their market share, helped by state support.
The company will continue supplying Chinese clients with operations abroad, including Lenovo, and will maintain sales to customers in the automotive and smartphone sectors.