Micron Technology has issued an alert regarding the impact of Chinese government-led cybersecurity investigations on its related sales to China-based customers. According to the company, such investigations could influence about half of these sales, representing a “low-double-digit” percentage of its global revenue.
Several Micron customers have been contacted by Chinese officials as part of the Cybersecurity Administration of China’s investigation, announced earlier this year. Micron’s sales to companies located in mainland China and Hong Kong, including direct and indirect sales through distributors, account for approximately one-quarter of Micron’s global revenue, constituting the largest exposure, as stated by the company.
In a statement contained in a regulatory filing, the company said it is working “to mitigate this impact over time and anticipates greater variability in revenue quarter-to-quarter.” Following the news, shares of Micron fell 2.3% as Wall Street opened.