Micron will stop supplying server chips to data center companies in China, having failed to recover its business following a government ban on sales in the country in 2023.

Per a report from Reuters, the company will continue to sell chips to the country’s automotive and mobile phone sectors, in addition to two Chinese customers with data center operations outside of China.

Sources cited in the report said one of those customers is Lenovo.

The 2023 ban was viewed as a retaliatory move by the Chinese government following efforts by the US to restrict chip exports to the country as part of the ongoing US-China trade war. At the time, Micron was accused of posing "serious network security risks" by the Chinese cyberspace regulator and was banned from being used in the country’s key infrastructure projects.

Reuters said Micron’s data center team currently employs more than 300 people in China, but it is unclear how many jobs will be impacted by the company’s decision. The memory chip maker has continued to expand some of its other operations in the country, however, including its chip packaging facility in the city of Xian.

"We have a strong operating and customer presence in China, and China remains an important market for Micron and the semiconductor industry in general," Micron said in its statement to Reuters.

The move follows an announcement from Micron in June that it was planning to invest $200 billion to boost chip manufacturing in the US, with the funds set to support the company’s construction of a second memory fab in Boise, Idaho, two additional fabs in New York, and the expansion of its manufacturing facility in Manassas, Virginia.

In April, the company said it was planning to impose a surcharge on some of its products as a result of President Donald Trump’s tariffs. The company has a number of manufacturing sites in East Asia, including Taiwan, Japan, Malaysia, Singapore, and China, all of which had tariffs placed upon them by Trump.