Micron, a US chip giant, has announced plans to invest over $600 million in its plant in Xi’an, China. The investment aims to acquire equipment and establish a new factory at the facility. This decision comes after China’s cybersecurity watchdog declared that Micron had failed a national security review, leading to a halt in the purchase of its products by operators of critical information infrastructure. The ongoing chip war between the US and China has resulted in Washington’s efforts to restrict China’s access to advanced semiconductors. Despite these challenges, Micron’s CEO, Sanjay Mehrotra, expressed the company’s commitment to its China business and employees.
Micron intends to purchase chip-packaging equipment from a local company, Licheng Semiconductor, which had been operating some equipment in Micron’s facility under a previous agreement. The investment aligns with Micron’s global packaging and testing strategy, allowing the company to manufacture a wide range of products in Xi’an. The plan also involves constructing a new facility with production lines for mobile DRAM, NAND, and SSD chips.
Approximately 10% of Micron’s annual revenue, amounting to $30.8 billion last year, came from China. However, analysts highlight that a significant portion of Micron’s products sold in China are purchased by foreign manufacturers, and it remains uncertain whether the cybersecurity decision impacts sales to foreign buyers. The US government has expressed serious concerns regarding China’s restrictions on Micron. The conflict between the two countries has seen China initiating an investigation into Micron, while the US has implemented restrictions to limit China’s access to high-end chips and related technologies. Other countries, such as the Netherlands and Japan, have also introduced export restrictions, without explicitly mentioning China, in the field of specialized semiconductor technology.

Thanks to RFI, for providing this article.

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