In May 2023, relevant Chinese authorities issued a notification, pointing out that Micron's products carried cybersecurity risks. As a result, domestic operators of critical information infrastructure were required to halt the purchase of Micron's products. This move dealt a severe blow to Micron's data center business.

Recently, Micron has announced plans to cease supplying server chips to Chinese data centers. However, when questioned about this strategic adjustment, the company did not offer a direct response. Instead, it merely mentioned that its business operations had been affected by market regulations in China.

Previously, Micron had made significant investments, pouring over RMB 4.3 billion into upgrading its packaging and testing facility in Xi'an. Moreover, it reached a settlement with Fujian Jinhua towards the end of the year.

In March 2024, the expansion project of the Xi'an packaging and testing facility kicked off, with the ambitious goal of becoming operational in the second half of 2025. Nevertheless, the review restrictions imposed on Micron still persist.

Over the years, Micron's revenue share from mainland China has witnessed a continuous decline. From 2023 to 2025, the figures dropped sequentially to 14.03%, 12.1%, and 7.1%, respectively. This downward trend clearly indicates an ongoing contraction of Micron's business in the Chinese market.