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Micron to Shut Down DRAM Chip Design Operations in Shanghai

Company to focus on NAND and SSD technology. 150 Chinese engineers at the site may be asked to relocate to the United States or India.


A worker inspects chips at the semiconductor packaging firm Unisem (M) Berhad plant in Ipoh
Analysts say Chinese companies had been "extraordinarily adept" at getting round the West's export controls via third parties, groups offshore or shell companies, which can be hard to track because they often change their names. Photo: Reuters.

 

Memory chip maker Micron Technology will shut down its DRAM chip designing operations in Shanghai by the end of this year, the company confirmed late on Wednesday.

In a statement given to Reuters, the company said it will close its DRAM Engineering Group from its Shanghai Design Centre over the next year, with completion expected by December 2022.

The company added that the centre would focus on developing NAND and SSD technology moving forward.

The South China Morning Post, citing industry sources, said that 150 Chinese engineers at the site will be asked to relocate to the US or India.

Micron makes NAND memory chips that serve the data storage market as well as DRAM chips that are widely used in data centres, personal computers and other devices.

Semiconductors have been at the heart of US-China tensions and Washington has been looking to shift the balance back in favour of the West and away from Asia, driven by intellectual property and supply chain concerns.

In 2018, the US Department of Justice indicted Taiwan-based chip maker United Microelectronics Corp (UMC) and China’s Fujian Jinhua Integrated Circuit Co Ltd, alleging the companies conspired to steal trade secrets from Micron.

Fujian Jinhua denied the allegations. UMC pleaded guilty to the charges and paid a $60 million fine.

 

  • Reuters with additional editing by Jim Pollard

 

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Jim Pollard

Jim Pollard is an Australian journalist based in Thailand since 1999. He worked for News Ltd papers in Sydney, Perth, London and Melbourne before travelling through SE Asia in the late 90s. He was a senior editor at The Nation for 17+ years and has a family in Bangkok.