China has launched a cybersecurity investigation into Micron Technology, raising the possibility of a ban on the US memory vendor's product sales in the country.

In response to the probe, Chinese companies, including large-scale cloud server vendors and government-affiliated firms, are already adjusting or replacing the sources of their memory supplies, according to industry sources.

The US reportedly has demanded Korean vendors Samsung Electronics and SK Hynix not expand their shipments to China if Micron product sales are banned.

Sources from the memory industry said the Korean firms are unlikely to comply completely with the US demand. After all, the Korean firms could seize the opportunity to digest their inventory, the sources said.

But the Chinese market would still be undermined if one of the three major DRAM suppliers in the world is prevented from selling its products there. There could be short supply and prices would go up, the sources said.

Many industry observers speculate that China would spare Micron's DRAM, but would ban its NAND flash and SSD products.

The US has banned exports of equipment for making 128-layer or more NAND flash chips to China, directly disrupting YMTC's tech upgrades. But the Chinese NAND chip maker already has considerable production capacity.

Industry sources said YMTC's production remains normal although i