Micron to halt server memory shipments to mainland China data centers

Micron Technology plans to stop supplying server-grade memory chips to data centers in mainland China after the business failed to recover from a 2023 government restriction on its products used in critical infrastructure, people briefed on the decision said on Friday. The company will continue to sell memory products to some Chinese customers with significant data center operations outside the mainland, including laptop maker Lenovo, and will maintain sales to China’s automotive and smartphone sectors.

The shift follows a 2023 move by Chinese authorities that barred Micron products from certain sensitive infrastructure, a restriction that has continued to limit the company’s ability to compete in China’s fast-growing server market. The ban occurred amid broader technology tensions between the United States and China, including U.S. export controls aimed at slowing the transfer of advanced semiconductor technology. Micron was the first U.S. memory maker to be directly targeted; other U.S. firms have since faced scrutiny but not equivalent bans.

Mainland China accounted for about $3.4 billion, or roughly 12 percent, of Micron’s revenue in its last fiscal year. Company officials...