US-China tech war: chip maker Micron to close DRAM design operations in Shanghai, move key engineers to US, India
- The US chip company said the change is to focus on producing NAND memory in Shanghai, but a source said a ‘loss of technical know-how’ was a factor
- Some of the 150 members of the firm’s Shanghai DRAM team can apply to be relocated, with successful applicants given immigration packages to the US or India
US memory chip giant Micron Technology has confirmed it will close its DRAM design operations in Shanghai by the end of this year, with industry sources saying some of the 150 Chinese engineers will be asked to relocate to the US or India.
Micron said in a statement on Wednesday that its DRAM engineering team “will vacate from the Shanghai Design Centre”, with the process expected to be completed before December 2022, adding that the rest of its operations in the city would not be affected.
The company, which employs about 43,000 people globally, said on Thursday that it is making the move to focus on its “industry-leading NAND technology at the Shanghai Design Centre”. DRAM, short for dynamic random-access memories, is a common type of memory used in computers, while NAND is used for flash storage.
However, employees and industry analysts have also indicated that the move could be a precaution to prevent talent loss and technology leaks to competitors in China.
A current Micron employee, who requested anonymity, said the plan was announced internally last month and that the decision was made because of a “historic loss of technical know-how as some former employees and management were poached by big tech firms in China”.
The growing technology rivalry between China and the US also played a role, the employee said.
Micron denied this was the case, saying it is committed to the Shanghai Design Centre, where it will continue to make its solid-state drive (SSD) memory.
“China remains an important market for Micron and the semiconductor industry in general, and we continue to invest in our talent and strengthen operations across our sites in China,” Micron said.