Exclusive | Tech war: China’s top server makers stop orders of memory modules containing Micron chips, sources say

The halted orders highlight the immediate impact that China’s Micron ban has already dealt on the largest US memory chip maker

Inspur, which is under US trade sanctions, and Lenovo are among the biggest buyers of Micron products

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Published: 10:00am, 26 May 2023Updated: 10:10am, 26 May 2023

China’s top server makers, including Inspur Group and Lenovo Group, have asked suppliers to suspend shipments of modules containing chips made by US-based Micron Technology, after Beijing imposed a partial ban on the firm’s products, according to a supplier with knowledge of the situation.

DRAM chips used in memory modules for servers are a commoditised component that is commonly supplied by Micron and Samsung Electronics, said the source, who declined to be named to protect relationships with clients.

It would take some time for the suppliers to make technical adjustments for newly-sourced alternatives, the person added.

02:05

China imposes restrictions on US chip maker Micron, escalating tech war

Lenovo and Inspur did not respond to requests for comment.

The halted orders highlight the immediate impact that China’s ban, announced on Sunday, has already had on the United States’ largest memory chip maker.

The Chinese market has been one of Micron’s major revenue generators, contributing about 11 per cent of the company’s total revenue of US$30.8 billion in 2022. The firm expects low to high single-digit losses to its total sales as a result of the ban, which prohibits critical information infrastructure operators in China from buying its products.

Inspur, which is under US trade sanctions, and Lenovo are among the biggest buyers of Micron products, according to Bloomberg data.

The ban also affects memory module makers and third-party suppliers.

Exclusive | Tech war: China’s top server makers stop orders of memory modules containing Micron chips, sources say

The halted orders highlight the immediate impact that China’s Micron ban has already dealt on the largest US memory chip maker Inspur, which is under US trade sanctions, and Lenovo are among the biggest buyers of Micron products

The halted orders highlight the immediate impact that China’s Micron ban has already dealt on the largest US memory chip maker

Inspur, which is under US trade sanctions, and Lenovo are among the biggest buyers of Micron products