On Friday, U.S. memory chipmaker Micron (MU.O) announced investing 4.3 billion yuan ($603 million) in its Xian chip packaging factory.
China’s cyberspace authority announced last month that the US’s largest memory chipmaker had failed a network security examination and would prevent operators of important infrastructure from buying from the company.
Micron’s Friday WeChat statement didn’t mention the review’s decision.
“This investment project demonstrates Micron’s unwavering commitment to its China business and team,” CEO Sanjay Mehrotra said.
Micron said it will buy packaging equipment from a Xian subsidiary of Taiwan’s Powertech Technology Inc (6239. TW), which it has used in production since 2016.
Micron will add a mobile DRAM, NAND, and SSD production line to improve packaging and testing.
Powertech stated in a second statement that Micron’s equipment purchase was part of their 2016 agreement. Thus, Powertech’s financial impact would be minimal.
Micron, China’s trade ministry, and the Cyberspace Administration of China didn’t immediately respond to requests for comment.
Micron did not specify the deal’s value but claimed it would offer contracts to 1,200 Powertech Xian employees and create 500 new employment.
The business claimed that Micron’s China workforce would exceed 4,500.
After the China ban in May, Micron predicted a low- to high-single-digit revenue drop. Reuters revealed that Chinese officials were reducing Micron chip purchases before the ban.
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