Micron Expects Hit on Revenue in Quarterly Results Amid Ban in China

 Micron Expects Hit on Revenue in Quarterly Results Amid Ban in China:

US- grounded Micron Technology on Monday  read a  megahit to  profit in the low-single to high-single  number chance after a ban by China on  trade of its memory chips to  crucial domestic  diligence marked the  rearmost in the Sino- American trade  wrangle.   China's cyberspace  controller said late on Sunday that Micron, the biggest US memory chipmaker, had failed its network security review and that it would block drivers of  crucial  structure from buying from the company.   It didn't  give details on what risks it had  set up or what products from the company would be affected.   Judges said they saw limited direct impact on Micron as  utmost of its  crucial  guests in China are consumer electronics players, but advised the move could prompt some companies to  relieve their  force chains of Micron products due to political  pitfalls. 

Micron Chief Financial Officer Mark Murphy said at a conference on Monday it was unclear what  enterprises Beijing had and direct and  circular deals to China- headquartered companies  reckoned for about a quarter of the chipmaker's  profit.  " We're  presently estimating a range of impact in the low single-  number chance of our company's total  profit at the low end, and high single-  number chance of total company  profit at the high end," Murphy said.   The  reflections helped Micron's shares  shear losses, with the stock last down3.4 percent after falling up to 6 percent in premarket trading.   Beijing's decision was opposed by Washington but helped stocks of Micron's rivals in China and South Korea, which are seen  serving as  landmass  enterprises seek memory products from other sources.  " We  forcefully oppose restrictions that have no base in fact," a  prophet from the US Commerce Department said on Sunday.  " This action, along with recent raids and targeting of other American  enterprises, is inconsistent with( China's) assertions that it's opening its  requests and committed to a transparent nonsupervisory  frame."   Pressures between Washington and Beijing have grown in recent months following raids and visits by Chinese authorities to US commercial due  industriousness  establishment Mintz Group and  operation consultancy Bain.   Micron is the first US chipmaker to be targeted by Beijing following a series of import controls by Washington on certain American  factors and chipmaking tools to block them being used to advance China's military capabilities.   China launched the review in late March amid a  disagreement over chip technology and worsening relations between Washington and Beijing.   The move also comes shortly after the Group of Seven nations agreed to"de-risk, not  uncouple"  profitable engagement with China and as US President Joe Biden called for an" open hotline" between Washington and Beijing.   The US Commerce Department said it would speak directly with authorities in Beijing to clarify their  conduct.  " We also will engage with  crucial abettors  and  mates to  insure we're  nearly coordinated to address  deformations of the memory chip  request caused by China's  conduct," the department said.   While the Chinese statement and state media said the Micron decision  demanded to be seen as an individual case in the  environment of  public security  enterprises, not geopolitics, prominent Chinese judge Hu Xijin struck a different note.  " Washington itself encourages US companies to do  effects that  jeopardize China's  public security, so it suspects that Chinese companies are doing the same," the former editor- in- chief of nationalist state tabloid Global Times  twittered." The whole world should be  cautious of the US."   Michael Hart,  chairman of the American Chamber of Commerce in Beijing, said the ban sparked  query among US companies operating in China.   Hart said" members are asking us two  effects will they be targeted because they're American, and how can they  insure they remain  biddable in a business  terrain that appears to be decreasingly  told  by  public security  enterprises?"   Other US chipmakers with big exposure to China  similar as Qualcomm, Intel and Broadcom fell about 1 percent.   Chinese chip stocks rally   China's  advertisement on its Micron review helped boost shares in some original chipmaking- related  enterprises, as state media reported that domestic players could  profit from the move.   Shares in companies including Gigadevice Semiconductors, Ingenic Semiconductor and Shenzhen Kaifa technology opened up between 3 percent and 8 percent before  shearing earnings.   Micron's major rivals also saw their shares gain, with South Korea's Samsung Electronics and SK Hynix up0.9 percent and2.1 percent independently. They trimmed earnings  latterly and closed over0.2 percent and0.9 percent, as judges anticipate limited impact on Micron.   Both Samsung and SK Hynix had no comment.  " Since Micron's DRAM and NAND products are much less in  waiters, we believe  utmost of its  profit in China isn't generated from telcos and the government. The ultimate impact on Micron will be  relatively limited," Jefferies said.   Bernstein said a 2 percent hit to deals was the most realistic estimate given Micron's exposure to the enterprise and  pall garçon member is  fairly small.   Beijing has astronomically defined  diligence it considers" critical" as bones

              similar as public communication and transport, but has not specified just what type of business these apply to.   China, the world's biggest semiconductor buyer, has gradationally reduced its reliance on foreign- made chips in amulti-year  crusade to boost its  tone-  adequacy. 

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