China Blocks Micron: Samsung and SK Hynix Stocks Surge

On May 21st, the Chinese Cyberspace Administration announced that Micron Technology failed to pass the security review in China. According to Reuters, on May 22nd, the stock prices of South Korean companies Samsung Electronics and SK Hynix rose in early trading. Samsung's stock price increased by 0.7% and SK Hynix's stock price rose by 1.1%, while the overall market saw a growth of 0.8%.

Following the series of chip manufacturing technology export controls imposed by the United States on China, China announced in late March that it would conduct a review of Micron's products. The Chinese Cyberspace Administration stated on May 21st that the products manufactured by Micron did not pass the cybersecurity review and Chinese key infrastructure operators are prohibited from purchasing products from Micron.

The announcement from the Cyberspace Administration stated that the review revealed significant cybersecurity risks and vulnerabilities in Micron's products, posing a major security risk to China's critical information infrastructure supply chain. Consequently, the Cyberspace Administration concluded that Micron's products did not pass the cybersecurity review in accordance with the Cybersecurity Law and other relevant laws and regulations. Operators of critical information infrastructure within China are required to cease the procurement of Micron's products.

SK Hynix declined to comment, and Samsung Electronics did not provide an immediate comment.

Furthermore, the stock prices of some Chinese storage chip manufacturing-related companies also increased after the market opened on Monday. Companies like YMTC, Beijing Junzheng, and DeepTech saw their stock prices rise between 3% and 8%.