Benzinga -
- The White House urged South Korea not to fill any market gap in China if Beijing bans Micron Technology, Inc (NASDAQ: MU) from selling chips.
- The U.S. has asked Seoul to encourage Samsung Electronics Co Ltd (OTC: SSNLF) and SK Hynix to hold back from boosting sales to China if it bans Micron from selling under an ongoing investigation, the Financial Times reports.
- The U.S. requested as President Yoon Suk Yeol prepared to travel to Washington for a state visit on Monday.
- Also Read: Micron's Sturdy Moat: Analysts Foresee Negligible Impact from China Actions Thanks to US Chipmaker Ties
- In April, China launched a national security review into Micron, one of the three dominant players in the global Dram memory chip market, alongside Samsung and SK Hynix.
- Mainland China and Hong Kong generated 25% of Micron's $30.8 billion in 2022 revenue.
- Memory chip manufacturers are already under pressure due to an industry glut that, in the first quarter of 2023, triggered a 25% decline in the price of Dram chips, which serve everything from TVs to phones.
- In December, the U.S. put Chinese memory chip producer Yangtze Memory Technologies Co on its "entity list," barring companies from exporting American technology to the nascent Micron rival without a hard-to-obtain license.
- Price Action: MU shares traded lower by 2.26% at $59.75 premarket on the last check Monday.
- Photo by Body Stock and Dragon Claws via Shutterstock