Micron expands investment in China after government blocks use of company chips

Micron expands investment in China after government blocks use of company chips
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A Micron announced an investment of approximately $603 million at its chip factory located in the city of Xian, China. The move is being hailed as a “goodwill gesture” after the company ran into trouble with Chinese authorities.

Recently, Micron saw the Chinese cybersecurity regulator recommend banning the use of its memory chips in critical equipment. The agency did not list the problems behind the action, which it considered retaliation against the United States.

In a statement published on the company’s official channels and on WeChat, Micron did not mention China’s “regulatory attack”, but highlighted the main advantages of the investment.

Image/reproduction: facade of the Micron building.

Micron CEO Sanjay Mehrotra commented:

This investment project demonstrates Micron’s unwavering commitment to its business and team in China.

Micron’s investment will also include the purchase of new chip production equipment from a Taiwanese subsidiary of Powertech Technology. With this, the American will be able to open a new assembly line for DRAM, NAND and SSD chips.

The action should also generate another 500 direct jobs, something that should raise the number of employees in Micron China to around 4,500 people.

It is worth remembering that so far the Chinese government has not yet revealed what problems were found in Micron’s chips. The justification used is the same offered by the US: “national security”.

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