On Friday, Micron (MU.O) invested 4.3 billion yuan ($603 million) in its Xian chip packaging factory.
Last month, China’s cyberspace administration stated that the US’s top memory chipmaker had failed a network security exam and would not sell to critical infrastructure operators.
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 remarked.
Since 2016, Micron has purchased packaging machinery from Powertech Technology Inc. (6239. TW)’s Xian subsidiary. Micron will optimize packaging and testing with a mobile DRAM, NAND, and SSD production line.
Powertech reiterated that Micron’s equipment purchase was part of their 2016 agreement. Powertech’s financial impact is negligible.
Micron, China’s trade ministry, and the Cyberspace Administration of China didn’t immediately reply to requests for comment.
Micron said it would contract 1,200 Powertech Xian workers and hire 500 more. Micron claimed 4,500 employees in China.
Micron expected a low- to high-single-digit revenue decline after the May China ban. Before the ban, Chinese regulators reduced Micron chip purchases, according to Reuters.
