Micron to invest 600 million in China, despite being banned
US chipmaker Micron said on Friday it would invest hundreds of millions of dollars in its high-tech manufacturing plant in the Chinese city of Xian, despite the Chinese government banning it from infrastructure developments because it posed internal security risks. just three weeks ago.
Micron made the announcement on social media app WeChat this morning . It said it would invest 4.3 billion yuan ($603 million) in the coming years to upgrade chip packaging and testing equipment at the Xi'an plant.
The investment adheres to Micron's global packaging and testing concept and will enhance the company's flexibility to manufacture a variety of product portfolios in Xi'an, allowing Micron to directly manage its packaging and testing businesses.
The new plant announced this time will introduce a new production line for manufacturing DRAM products. Mobile NAND and SSDs to bolster existing packaging and testing capabilities. Micron has been preparing for the project for some time and has already started qualification activities for mobile DRAM production in Xi'an.
Micron President and CEO Sanjay Mehrotra said Micron has been "rooted in China" for decades and has "established deep relationships with customers." He added that this “investment project demonstrates Micron's commitment to the Chinese business and Chinese team members. An unshakable commitment”.
Micron has decided to invest in its Chinese factory just weeks after the country's cyberspace regulator said it would block its chips from accessing "critical infrastructure" over cybersecurity concerns.
At the same time, Micron also warned that about half of its sales tied to China-based customers could be affected by the Chinese government's survey, which represents a "low-digit percentage" of its global revenue, as Bloomberg reports. .
“Micron is working to mitigate this impact over time and expects more variability in revenues from quarter to quarter,” the company said in the filing. Shares of Micron fell 1.6% on the news.
Technology has become a national security battleground for Washington and Beijing. The United States has blacklisted Chinese tech firms and restricted the flow of advanced semiconductor manufacturing equipment into the country to block the development of Chinese chips, while the Biden administration is ramping up domestic chip factories.
While there is a lot of uncertainty between China and the US, Morgan Stanley recently told clients, "The reality is that a complete decoupling of the US economy from China is neither possible nor desirable."
Why? Just take a look at the supply chain map below to figure it out.
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The article Micron will invest 600 million in China, despite being banned comes from Economic Scenarios .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/micron-investira-600-milioni-in-cina-nonostante-sia-stata-messa-al-bando/ on Sat, 17 Jun 2023 14:20:23 +0000.