Micron says committed to China, invests $602 mln in existing plant (updated)

Powertech Technology

16/06/2023 04:03

(Adds quote from Micron CEO, details, background in paragraphs
1-9)
       BEIJING, June 16 (Reuters) - 
    U.S. memory chipmaker Micron  MU.O  said on Friday it was
committed to China and would invest 4.3 billion yuan ($603
million) over the next few years in its chip packaging facility
in the Chinese city of Xian. 
        The company has been 
    targeted
     by China's cyberspace regulator, which last month said the
firm, the United States' biggest memory chipmaker, had failed a
network security review and that the regulator would block
operators of key infrastructure from buying from the company.
  
        Micron made no mention of the review's decision in its
Friday statement, posted on WeChat.
  
        "This investment projects demonstrates Micron's
unwavering commitment to its China business and team," it quoted
CEO Sanjay Mehrotra as saying. 
  
        The investment will include buying packaging equipment
from a Xian-based subsidiary of Taiwan's Powertech Technology
Inc  6239.TW , which Micron has been using in the factory since
2016, the company said. 
  
        It will also open a new production line at the site to
manufacture mobile DRAM, NAND and SSD products to strengthen the
plant's packaging and testing capabilities. 
  
        Micron and Powertech did not immediately respond to
requests for comment. 
  
         Micron did not disclose the value of the deal but said
it would offer contracts to 1,200 employees of Powertech's Xian
subsidiary and that the investment would create an additional
500 jobs. 
  
        This would bring Micron's workforce in China to more
than 4,500 people, the company added.  
  
        
  
        ($1 = 7.1337 yuan)

 (Reporiting by Beijing newsroom; Editing by Muralikumar
Anantharaman and Gerry Doyle)
 ((bernard.orr@thomsonreuters.com))