The US trade sanctions quite literally killed China-based Fujian Jinhua Integrated Circuits Ltd. Sanctions have been in place since October 29, 2018.
News out of China has been bad long before the trade dispute. China has been modernizing but the pressure on the banking sector has been brutal.
Restriction of exports to Fujian Jinhua actually relates to a much older problem: Accusations of Chinese businesses stealing American trade secrets to shift the balance sheets (and balance of power) in their favor.
Micron has repeatedly accused Fujian Jinhua of stealing its trade secrets. The U.S. government didn’t specifically mention Micron in its announcement but seems that to be taking action against such possibilities.
It’s unclear how much of this concern is legitimate, but either way, the Department of Commerce has officially made Fujian Jinhua a no-go for U.S. companies, which could hinder its ability to manufacture DRAM. UMC (Taiwan) is also under sanction for allegedly stealing trade secrets.
This will likely hurt the supply of memory looking forward. China has other foundries but Samsung continues to be the largest manufacturer of DRAM.
Down the road we expect more integrated devices to have embedded RAM on the die. This makes sense as smaller sized devices can fit more onto a wafer.