Timeline: how Micron went from China business partner to the target of a national cybersecurity probe
- With an investment of US$250m and about 2,000 employees, Micron’s Xian factory in western China was its first in the country and its second in Asia
- In 2022, Micron said it would close its DRAM design centre in Shanghai and offered to relocate some of the 150 Chinese engineers
The Chinese government on Sunday banned the sale of certain Micron Technology products to key information infrastructure operators in the country, citing “cybersecurity risks”, in Beijing’s most forceful retaliation in the Sino-US tech war.
The following timeline highlights Micron’s key developments since its entry into China over two decades ago, and shows how the US company went from a welcome business partner to a target of Beijing’s national security investigation.
2001
Micron Technology, founded in 1978 and headquartered in Boise, Idaho, entered the Chinese market – the same year China officially joined the World Trade Organization – to serve its growing customer base in the country as multinational businesses rushed to set up manufacturing facilities.
Micron’s first office was in Xiamen, a coastal city in southeastern Fujian province, and one of China’s special economic zones.
02:05
China imposes restrictions on US chip maker Micron, escalating tech war
2004
Micron expanded its China operations and set up a company in Shanghai with about 60 employees. It also opened branch offices in Beijing and Shenzhen to provide corporate, sales and marketing services.
In addition, Micron established an integrated circuit (IC) design centre in Shanghai with about 50 employees.
2007
Micron opened a new manufacturing facility in Xian, the capital of northwestern Shaanxi province, to assemble and test its products, including dynamic random access memory (DRAM) chips, NAND flash memory, and CMOS image sensors.
With an investment of US$250 million and about 2,000 employees, the factory was Micron’s first in China and its second in Asia – the first being in Singapore in 1998.
At the time, the Xian facility was reportedly the biggest foreign-invested project in Shaanxi since China’s reform and opening-up in 1978.
Japan woos global chip makers as G7 moves to cut China exposure
2010
Micron said it would invest an additional US$300 million to build its second chip testing and module assembly facility in Xian.
2014
Micron jointly invested US$250 million with Powertech Technology Inc, a Taiwanese semiconductor assembly, packaging and testing company, to build a chip-packaging factory, which was due to be completed in 2017, in Xian’s hi-tech Zone.
Micron also ranked fourth among China’s semiconductor suppliers, after SK Hynix, HiSilicon Technology, the IC design arm of Huawei Technologies Co, and Semiconductor Manufacturing International Corp, according to a PwC report.
2017
The allegation came three months after Micron filed another lawsuit in Taiwan, accusing UMC’s employees of stealing DRAM trade secrets.
Founded in 2016, Jinhua received a 3 billion yuan (US$431 million) investment from the Chinese government to build a production line with technology support from UMC.
January 2018
Jinhua and UMC filed patent infringement suits against Micron’s Chinese subsidiaries in Fujian, where Jinhua was headquartered. The lawsuits claimed that certain Micron DRAM modules and solid-state drives infringed on UMC and Jinhua’s patents in China.
May 2018
Chinese antitrust watchdog the State Administration for Market Regulation launched an investigation into Micron, as well as South Korean memory chip makers Samsung Electronics and SK Hynix, for alleged antitrust violations.
The probe came as the US-China trade war was escalating, and as there was growing concern about rising prices for memory chips in China.
US lawmaker demands action against Chinese chip firm CXMT after Micron
July 2018
The Fujian Intermediate People’s Court ruled that Micron must cease sales of 26 semiconductor products, including DRAM chips and NAND flash memory chips, in China.
Micron, however, said the court ruled without allowing it to present a defence, adding that it believed its products did not infringe on the patents and that the suits were without merit.
2020
In the US, UMC pleaded guilty in the Micron trade secrets theft case, and was ordered by the court to pay a US$60 million fine.
January 2022
With about 3,000 employees across the country, Micron said it would “continue to invest in talent and strengthen operations” in China.
March 2023
It marked the first time a foreign semiconductor company was put under a cybersecurity review, and was seen as retaliation for Washington’s tightened restrictions on chip exports to China.
May 2023
Wu said Micron China “plays a critical role in enhancing the company’s global footprint and DRAM technology leadership”.
May 2023
Micron said it was aware of Beijing’s decision and was assessing its next steps and “looks forward to continuing to engage in discussions with Chinese authorities”.
