MU - Micron said to plan $604M investment in China facility; nears $1B deal for India plant

2023-06-16 05:36:00 ET

Micron ( NASDAQ: MU ) plans to invest ~$604 million over the next few years in its chip packaging facility in the Chinese city of Xian, and is also nearing a deal to commit ~$1 billion to build a similar factory in India, according to media reports.

For its China plant, the memory chipmaker will buy packaging equipment from a unit of Taiwan's Powertech Technology. Micron ( MU ) will also establish a new production line for mobile DRAM, NAND, and SSD devices.

"This investment demonstrates Micron's ( MU ) unwavering commitment to its China business and team," CEO Sanjay Mehrotra said in a statement posted on WeChat, Reuters reported .

The development comes a month after China banned Micron's ( MU ) products from its "critical infrastructure supply chain" after they failed its cybersecurity review .

Separately, the chipmaker is close to sealing the deal for a $1-billion commitment toward setting up a semiconductor packaging factory in India, Bloomberg reported citing people aware of the matter.

The investment, which may be announced during Prime Minister Narendra Modi's U.S. visit next week, could potentially reach up to $2 billion. There is no guarantee that an agreement will be finalized, and the details may be altered as talks proceed.

More on China's chip crackdown

• Who's next? Micron stock drops after being swept up into the war over silicon
• Chinese probe into Micron seen as 'major concern,' US lobbying group says
• China's cybersecurity review on Micron won't really impact company, Citi says
• Micron's Troubled Waters: Financial Struggles And The China Investigation

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