Shanghai (ZXZC)- On June 16th, U.S.-based memory chipmaker Micron Technology Inc. (referred to as "Micron") announced its plans to invest over 4.3 billion yuan in its packaging and testing factory located in Xi'an city, Shaanxi province over the coming years.

According to the company's WeChat post, this investment plan not only entails Micron's definitive acquisition of packaging equipment from Powertech Semiconductor (Xi'an) Co. Ltd. (referred to as "Powertech Xi'an"), but it also includes the establishment of additional facilities within Micron's Xi'an factory. Further, it aims to introduce brand new and high-performance packaging and testing equipment in a bid to cater better to the demands of Chinese customers.

Micron's Xi'an location; photo credit: Micron

Micron stated that this investment will boost the flexibility in manufacturing various product portfolios at its Xi'an location. It allows the company to directly operate packaging and testing services at the Xi'an factory. The newly announced facilities will bring forth a fresh production line for the manufacture of mobile DRAM, NAND, and SSD products, thereby enhancing the existing packaging and testing capacities of the Xi'an factory.

Micron said it has been preparing for this project for some time and has already initiated the certification process for mobile DRAM production in Xi'an.

According to the long-term strategic agreement previously reached, Powertech Xi'an's equipment has been operating in Micron's wholly-owned factory since 2016. However, this agreement has now reached its expiration. Micron estimates that this acquisition project will be completed in roughly one year, pending approval from Chinese regulatory authorities.

In addition, Micron has announced that after the acquisition of Powertech Xi'an, it will offer new employment contracts to all of Powertech Xi'an's 1,200 employees. Moreover, the new investment project will also add 500 additional jobs, bringing Micron's total number of employees in China to over 4,500.