October 21, 2025 /SemiMedia/ — Micron Technology plans to halt shipments of server chips to Chinese data centers, following restrictions on its products in critical infrastructure that have limited its operations in the region.

The company will continue supplying products to Chinese customers with significant data center operations outside China, including laptop maker Lenovo, as well as to clients in the automotive and smartphone sectors. In the last fiscal year, Micron generated roughly $3.4 billion in revenue from China, representing 12% of its total sales.

Micron said the decision to exit the Chinese data center segment complies with local regulations and existing restrictions. Since 2018, U.S.-China trade tensions and technological competition have intensified, with China ranking as the world’s second-largest server memory market. Restrictions on Micron products have allowed competitors like Samsung Electronics and SK Hynix to gain market share.

According to Reuters analysis, investment in Chinese data center computing capacity surged ninefold last year to about 24.7 billion yuan ($3.4 billion). Despite these challenges, global AI-driven demand for data centers has helped Micron achieve record quarterly revenues.

Sources note that Micron’s data center team in China employed over 300 people, though the number of potentially affected positions remains unclear. The company has also reduced staff in other Chinese operations, including its general flash storage and mobile NAND projects.

Micron continues to expand in areas such as its chip packaging facility in Xi’an. The company said, “China remains a critical market for Micron and the semiconductor industry, and we maintain a strong operational and customer base in the region.”