Minor headwind expected from China's ban on certain Micron chips

[Fred Chen]

https://www.fierceelectronics.com/electronics/micron-reports-headwinds-china-sanctions-memory-growth-falters

The impact of the May 21 decision by CAC (Cyberspace Administration of China) on Micron’s business remains “uncertain and fluid,” he said on the call, according to a transcript from Seeking Alpha. About half of the China-based customer revenue is at risk of being impacted, with such revenue making up a low double-digit percentage of Micron’s global revenues.

China’s Ban on Micron Chips Will Only Hurt Itself - The News Lens International Edition

China’s political game isn’t working out in its favor. Instead of harming Micron and influencing U.S. policy, the ban will harm Chinese buyers.

international.thenewslens.com

China accounts for only 11-16% of Micron’s revenue, and when combined with distributor customers who sell to the China market, the revenue exposure is about 25%. Bernstein analyst Mark Li, estimated that if all servers in China are prohibited from using Micron products, it will only affect 2% of Micron’s revenue. If one considers the broader 25% revenue exposure, the restrictions will affect 5% of its revenue.

In fact, China is hurting itself more with this ban:
"Following the ban, China will have to buy memory units from Micron’s competitors, including South Korea’s Samsung and SK Hynix, at higher prices."

 

[tonyget]

In fact, China is hurting itself more with this ban:
"Following the ban, China will have to buy memory units from Micron’s competitors, including South Korea’s Samsung and SK Hynix, at higher prices."

Just like the US is hurting itself by banning Huawei，they'd have to buy from Nokia/Ericsson at much higher prices

 

[Paul2]

China accounts for only 11-16% of Micron’s revenue

You need to count in for the funny accounting. A sale to an American company which will then ship chips to China for assembly into final products will be accounted as sale to a Western client.