Micron will not refuse to invest in its Chinese company even under sanctions

Since last fall, US and Chinese sanctions against chipmakers operating in China have been reciprocal in the case of Micron Technology. Chinese authorities recently banned the use of this brand’s products in the country’s critical infrastructure. At the same time, the American memory manufacturer intends to spend 603 million US dollars over the next few years to expand and modernize its plant in China.

Image source: Micron Technology

The agency reported Reuters, noting that Micron Technology has a chip testing and packaging facility in Xi’an, China. The Micron representative posted his intention to continue investing in the local company on the pages of one of China’s most popular social networks. The text did not contain any reference to the decision of the country’s authorities to restrict the use of memory of this brand to critical infrastructure facilities. The management of the American manufacturer expressed its determination to maintain its business in China and the team of specialists there.

As part of China’s facility modernization initiative, Micron intends to purchase memory chip testing and packaging equipment made in China by the local division of Taiwan’s Powertech Technology. Micron has been using the services of this supplier since 2016. In addition, the Xi’an plant will have a new production line for the production of mobile DRAM chips, NAND flash memory and commercial solid-state drives. Powertech is also based in Xi’an and the deal with Micron will allow for the hiring of 1,200 people, while the American memory maker itself will hire another 500 people. This will increase the number of Micron employees in China to over 4,500 people.

Micron Technology is seeking US government subsidies in an effort to develop local memory manufacturing and faces a number of restrictions on expanding its operations in China. Apparently, the modernization of the Xi’an plant is within the acceptable range of the requirements of the US authorities, and the equipment used for this is not subject to restrictions in the field of US export control, since it is mainly equipment for processing silicon wafers, and not testing and packaging of memory chips.