US chip giant Micron to invest $600 mn in China plant
China's cybersecurity watchdog last month said Micron had failed a national security review.
The regulator's review has revealed significant network security issues in the products of Micron Technology, posing risks to China's information infrastructure. / Photo: Reuters
US chipmaker Micron has said it would invest more than $600 million in a packing and testing factory in northern China, less than a month after Beijing banned its chips from critical infrastructure projects.
In a WeChat statement on Friday, the firm said it would invest more than 4.3 billion yuan ($605 million) over the next few years in its plant in the city of Xi'an to acquire equipment and add a new factory at the facility.
China's cybersecurity watchdog last month said Micron had failed a national security review, telling operators of "critical information infrastructure" to stop buying its products.
It was the latest escalation in a bitter chip war between the United States and China, which has seen Washington move to block Beijing's access to cutting-edge semiconductors.
"This investment project underscores Micron's unwavering commitment to our China business and our China team members," CEO Sanjay Mehrotra said in a statement.
Micron said it would buy chip-packaging equipment from the Xi'an-based Licheng Semiconductor, which had already been operating some equipment in the US company's facility under a previous agreement.
"The investment is in line with Micron's global packaging and testing concept and would give the company the flexibility to manufacture a wide portfolio of products in Xi'an," the firm said in its WeChat statement.
Micron will also build a new facility with production lines for mobile DRAM, NAND and SSD chips, it added.
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