Core Viewpoint - Micron plans to cease supplying server chips to data centers in China due to the impact of a 2023 government ban on its products in critical infrastructure, which has hindered recovery efforts [1][6]. Group 1: Business Impact - The company was the first U.S. chipmaker targeted by the Chinese government, seen as a retaliatory measure against U.S. restrictions on China's semiconductor industry [1]. - Micron generated $3.4 billion, or 12% of its total revenue, from mainland China in the last business year, but will continue to sell to two Chinese customers with significant data center operations outside China, including Lenovo [4][5]. - The ban has resulted in Micron missing out on China's data center expansion boom, benefiting competitors like Samsung Electronics, SK Hynix, and Chinese firms such as YMTC and CXMT [10]. Group 2: Market Dynamics - Despite challenges in China, the global demand for data centers, driven by AI adoption, has allowed Micron to report record quarterly revenue [15]. - The investment in data centers in China surged ninefold to 24.7 billion yuan ($3.4 billion) last year, indicating a significant market opportunity that Micron is currently unable to capitalize on [15]. - Micron is looking to expand its customer base outside of China in regions such as Asia, Europe, and Latin America [5]. Group 3: Employment and Operations - Micron's data center team in China employs over 300 people, and the company has been downsizing in other areas, including laying off several hundred employees in its universal flash storage program [17]. - The company continues to maintain a chip packaging facility in Xian, indicating a commitment to certain operations within China despite the challenges [18].

Core Viewpoint - Micron plans to cease supplying server chips to data centers in China due to the impact of a government ban on its products, which has not recovered since 2023 [1] Group 1: Company Actions - Micron will continue to sell to two Chinese customers with significant data center operations outside of China, including Lenovo [3] - The company generated $3.4 billion, or 12% of its total revenue, from mainland China in the last business year [3] - Micron aims to seek customers in other regions such as Asia, Europe, and Latin America to compensate for the loss of business in China [4] Group 2: Market Context - The U.S.-China trade tensions and tech rivalry have intensified since 2018, with the U.S. imposing tariffs and sanctions on Chinese tech firms [6] - Despite the challenges, there is a global expansion of data centers driven by AI demand, which Micron is betting on to recover lost business [5] - Other U.S. chipmakers like Nvidia and Intel have faced similar accusations from Chinese authorities regarding security risks, although no regulatory actions have been taken against them [2]