Inside Micron’s operations
Boise’s Micron Technology Inc. stock is taking a hit after the Trump administration blacklisted one of its major customers, Chinese electronic manufacturing giant Huawei, in an ongoing trade war between the two countries.
“Blocking the sale to Huawei of critical components could also disrupt the businesses of American chip giants like Micron Technology Inc. and retard the rollout of critical 5G wireless networks worldwide — including in China. That in turn could hurt U.S. companies that are increasingly reliant on the world’s second-largest economy for growth,” Bloomberg reported on Monday.
As Huawei’s fourth-largest U.S. supplier, Micron is one of the nation’s most-exposed companies, according to Bloomberg. Micron reported in an SEC filing earlier this year that Huawei was responsible for 13% of Micron’s revenue in the first six months of this fiscal year, or roughly $1.79 billion.
Micron shares closed at $34.62 Monday, down from Friday’s close of $36.06, a 4% decline. The stock has lost about 20% of its value since closing at $43.33 on May 3.
“Micron is closely monitoring the announcement from the U.S. Department of Commerce regarding the addition of Huawei Technologies Co. Ltd. and its affiliates to the Bureau of Industry and Security’s Entity List,” Micron spokesman David Oro told the Statesman via email. “As a U.S.-based company with a global footprint, Micron respects and complies with all laws and regulations in the U.S. and other countries where we operate.”