Micron, the US memory-chip maker, is investing over $600 million in its Xi’an factory in China to demonstrate its commitment to the country. This comes just weeks after Micron was banned from supplying critical infrastructure operators in China due to network security risks. Despite this, Micron did not mention Beijing’s actions in its announcement on WeChat. The investment will be used to upgrade chip packaging and testing equipment at the Xi’an facility, showing Micron’s dedication to its China business and team, according to Sanjay Mehrotra, the CEO of Micron. However, Chinese consumer electronics groups are reportedly making plans to replace Micron’s memory chips. Micron has not commented on this matter.
Micron’s investment will result in 500 new jobs, bringing the total headcount in China to over 4,500. Additionally, Micron plans to purchase packaging equipment from a Xi’an-based subsidiary of Taiwan’s Powertech Technology, which it has been using since 2016. The company also intends to build a new production line for memory chips in the Xi’an facility. Beijing’s actions against Micron are viewed as a significant response to the US restrictions on chip exports to China. The Cyberspace Administration of China conducted a seven-week probe into Micron prior to the ban.
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