The report emphasizes that Micron Technology will continue to provide chips for automotive electronics and smartphones to Chinese customers, and maintain some of its manufacturing and packaging businesses in China. The company will continue to support customers who have business in China but have data centers located overseas, including personal computer manufacturer Lenovo Group. Micron Technology stated in a statement that "we have a strong operational and customer base in China, which remains an important market for Micron Technology and the entire semiconductor industry.
In the previous fiscal year, the Chinese market accounted for approximately 12% of Micron Technology's revenue. In 2023, China banned the use of Micron technology chips in "critical infrastructure", and since then Micron's business in the Chinese market has continued to suffer setbacks, losing to competitors such as Samsung Electronics and SK Hynix in serving Chinese enterprises.
According to sources, Micron Technology employs over 300 people in its data center team in China. The cessation of chip supply to Chinese data centers may have an impact on the team, but the specific number of affected positions has not been determined. In addition, Micron Technology has also laid off employees in other fields in China. In August, the company laid off hundreds of people in its universal flash storage project, after Micron had decided to halt development of future mobile NAND products globally.
However, Micron Technology still has areas for expansion in China, and its chip packaging facilities in Xi'an are further developing. In March last year, Micron Technology announced an additional investment of 4.3 billion yuan in Xi'an to build an advanced packaging and testing factory. The factory is expected to officially put its new production line into use within this year.