We're digging into the chip makers. Motley Fool Money starts now.

I'm Dylan Lewis and I'm joined over the airwaves by Motley Fool Analyst,

Asset Sharma. Asset, thanks for joining me. Dylan, thanks for having me. Good to be with you.

So I want to talk about chip news. There's a lot of it this week in the component and hardware

supplier market. Shares of micron are down 4% this week after the Chinese government effectively

banned Chinese companies working on key infrastructure projects from buying micron's chips.

The announcement came after a two month long cybersecurity review and it seems to be an answer

to past restrictions. The US government set on chips and chip making technology.

Asset, there is a lot of angles to the story. I think maybe we can start out with the impact

specifically to micron and then broaden things out because I think it is probably,

I think it's an indication of where the chip making market is. Sure, Dylan.

You know, for micron, this has been a growth market for them. They tend to add Hong Kong to

mainland China when they're discussing their results. So if you look back at 2020, mainland China

plus Hong Kong, if we're thinking in terms of companies that are headquartered in these regions,

made up about 39% of micron sales. Now, in the past two years, they make up a smaller percentage,

about 25% of total revenue because Taiwan, which is more of an ally to the US in this big geopolitical

game, has taken up some of that slack, but still important markets. Now, the CFO of micron

gave a little bit of information at an investor conference and he said, basically, they're trying

to assess the impact. They do not have a lot of specific information from the Chinese government

on what constitutes key infrastructure. Based on what they think, they feel that they'll have

a low single digits to maybe high single digits, 9 or 10, possibly percent impact on their revenue.

So it's not a small bite, but it could be something manageable in the near term.

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