Micron Technology is preparing to exit China’s server chip market after a prolonged impact from the 2023 ban that barred its products from use in critical infrastructure. The decision marks a significant retreat from a key global market and underscores the deepening technological rift between Washington and Beijing.

While sales to Chinese data-centre operators will cease, Micron will continue serving customers in the automotive and mobile sectors, alongside multinational partners operating data facilities outside the mainland. The company, which derived roughly 12% of its annual revenue from China, said the move aligns with compliance obligations and global business priorities.

The withdrawal highlights the enduring strain on U.S. tech firms caught in cross-border policy tensions. Micron’s absence opens opportunities for competitors such as Samsung, SK Hynix, and domestic Chinese chipmakers to expand their share of the fast-growing AI-driven data-centre market.

Industry analysts suggest that Micron’s redirection towards other global markets could help offset lost Chinese business, as international demand for high-performance computing and memory chips continues to surge.