Despite the security warning
US chipmaker Micron invests millions in China business
6/16/2023 8:34 am
According to Chinese regulators, Micron’s products pose a security risk. However, that hasn’t stopped the chipmaker from increasing its exposure to China. Investments of 600 million US dollars are planned.
The US memory chip manufacturer Micron intends to continue its involvement in China and invest around 600 million US dollars there in the next few years. “This investment project demonstrates Micron’s unwavering commitment to its China business and team,” Micron CEO Sanjay Mehrotra said in a statement recently posted to WeChat.
Micron plans to set up a new production line for the manufacture of mobile DRAM, NAND and SSD products at the site in the Chinese city of Xian. The investment also includes the purchase of packaging equipment from a Xian-based subsidiary of Taiwanese company Powertech Technology Inc, which Micron has been using at the factory since 2016.
According to the US manufacturer, the investment will create 500 additional jobs. As recently as May, a Chinese supervisory authority warned against the use of Micron components due to alleged safety risks. The products posed massive security risks to the supply chain of China’s critical information infrastructure, including telecommunications companies and state-owned banks. But the e-commerce giant Alibaba is also a buyer of the memory chips. A heavy blow for Micron. The group from Idaho makes about eleven percent of its annual sales in China.
China itself wants to strengthen its own production of semiconductor chips and has already achieved success. One problem, however, is cutting-edge chips, the newest and most advanced models available on the market. Beijing is investing massively, after all, the chips are needed for the military and AI. There are currently still dependencies, including on Japan, the USA, South Korea and Taiwan.