The US memory chip manufacturer Micron declared its commitment to China on Friday and announced plans to invest 4.3 billion yuan ($603 million) in its chip packaging factory in the Chinese city of Xian over the coming several years.
China’s cyberspace regulator has targeted the business, claiming last month that the corporation, which is the largest memory chip manufacturer in the US, failed a network security examination and that, as a result, the government would forbid owners of critical infrastructure from doing business with the firm.
In its statement that was published on WeChat on Friday, Micron made no reference to the outcome of the review.
It quoted CEO Sanjay Mehrotra as saying, “This investment project demonstrates Micron’s unwavering commitment to its China business and team.”
According to the investment, Micron will purchase packaging equipment from a subsidiary of Taiwan’s Powertech Technology Inc. with headquarters in Xian. Micron has been utilising this equipment at the facility since 2016, according to the business.
In order to improve the packaging and testing capabilities of the facility, a new production line will be established there to create mobile DRAM, NAND, and SSD devices.
Requests for feedback from Micron and Powertech were ignored right away.
While Micron did not provide the deal’s value, it did state that it would offer contracts to 1,200 of Powertech’s Xian subsidiary employees and that the investment would generate 500 more jobs. According to the corporation, this would increase Micron’s employee count in China to around 4,500.
