Micron breaks ground on Xi'an packaging and test factory expansion project

Latest update time：2024-03-27

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Micron’s first Sustainability Center of Excellence demonstrates company’s ongoing commitment to China operations and local communities

March 27, 2024, Xi'an, China - Micron Technology Inc. (Micron Technology Inc., Nasdaq: MU), the world's leading semiconductor company, today announced that its new packaging and testing plant in Xi'an has officially broken ground. The commencement of construction further strengthens the company's unremitting commitment to its operations, customers and communities in China. Micron also announced at the groundbreaking ceremony that the company will establish Micron's first packaging and test manufacturing sustainability center of excellence (CoE) in Xi'an to promote the company's partnerships in environmental, social and governance (ESG) and achieve global sustainability development Goals.

In June 2023, Micron announced an additional investment of 4.3 billion yuan in Xi'an, which includes the construction of a new factory, the introduction of new production lines, and the manufacture of a wider range of product solutions, including but not limited to mobile DRAM, NAND, and SSD. Expand the Xi'an factory's existing DRAM packaging and testing capabilities. Micron will also invest in multiple engineering laboratories in the Xi'an factory to improve the efficiency of product reliability certification, monitoring, fault analysis and debugging, thereby helping customers speed up product launch time. These investments will enable Micron to better meet the needs of domestic and international customers. The new factory is expected to be put into operation in the second half of 2025 and will gradually increase production according to market demand. After the completion of the new factory, the total area of Micron's Xi'an factory will exceed 132,000 square meters (1.4 million square feet).

Groundbreaking ceremony for Micron’s new factory in Xi’an

Micron is also advancing the acquisition of the assets of Licheng Semiconductor (Xi'an) Co., Ltd. (Licheng Xi'an) and will provide new employment contracts to all 1,200 employees of Licheng Xi'an. The new factory project will also create an additional 500 jobs, bringing Micron's total number of employees in China to more than 4,800.

Micron President and CEO Sanjay Mehrotra said:

Today's groundbreaking of the new facility is an important step in Micron's implementation of its global packaging and test strategy and demonstrates our unwavering commitment to our customers, operations and team members in China. Micron has been rooted in China for more than 20 years and has established close cooperation with customers, for which we are deeply honored. Micron’s additional investment in Xi’an will further help our customers develop and innovate in multiple fields.

Micron President and CEO Sanjay Mehrotra delivers a speech

Micron Xi'an will become the company's first packaging and test sustainability center of excellence, leading technological innovation and supporting the company in achieving global sustainability goals in areas such as energy efficiency, water treatment, emission reduction and waste management.

Manish Bhatia, executive vice president of global operations at Micron, said:

While laying the foundation for the new factory, we also committed to building a semiconductor packaging and testing sustainable development center of excellence in Micron Xi'an to contribute to China's low-carbon economy and the global semiconductor green supply chain. To this end, we are deploying advanced automation technology and AI-based intelligent solutions to build a world-class factory in Micron Xi'an.

In addition, with the strong support of the governments of Shaanxi Province, Xi'an City and Xi'an High-tech Zone, Micron also announced that it has joined forces with Schneider Electric, a global digital transformation expert in the field of energy management and automation, to jointly develop a strategic partnership in sustainable development, smart manufacturing, green factories and Carry out strategic cooperation in areas such as dual carbon management.

Micron and Schneider Electric strategic cooperation agreement signing ceremony

Xiong Yi, Senior Vice President of Schneider Electric and Head of Strategy and Development China, said:

We are honored to partner with Micron, the world's leading semiconductor company, to help them advance their sustainability goals. Sustainable development is the core of Schneider Electric's strategy. We will work with Micron to help its first sustainable development global center of excellence be successfully completed in Xi'an.

Micron Xi'an obtained the "National Green Factory" certification from the Ministry of Industry and Information Technology (MIIT) in 2020, demonstrating Micron's fruitful results in the field of sustainable operations. The new factory will use AI intelligent solutions to achieve a high degree of automation, and the factory design complies with the LEED (Leadership in Energy and Environmental Design) green building gold standard.

Micron has invested in China for more than 20 years, and supporting local community development has always been an important principle of the company's operations. At the groundbreaking ceremony, Micron also announced a donation of more than 10 million yuan to the China Women's Development Foundation's "Water Cellar for Mothers" project. The project will help improve the quality of drinking water for approximately 35,000 residents in 17 villages in Shaanxi, China, optimizing water supply efficiency and quality.

Micron donates more than RMB 10 million to China Women’s Development Foundation’s “Water Cellar for Mothers” project

Wu Mingxia, general manager of Micron China, said:

Micron strives to be a good corporate citizen in communities around the world. Our donation to the 'Mother Water Cellar' project will improve the quality of local drinking water and replenish more than 800,000 cubic meters of water resources every year. In addition, Micron’s partnership with the China Women’s Development Foundation demonstrates our commitment to supporting diversity, equality and inclusion globally.

Micron's operations in China include Beijing, Shanghai, Shenzhen and Xi'an. The company has won the "Best Workplace in Greater China" award for six consecutive years.

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