(Yicai Global) June 16 -- Micron Technology will invest more than CNY 4.3 billion (USD604.4 million) in its packaging test plant in Xi’an, northwest China, over the next few years to better meet the needs of Chinese customers, the US chipmaker said.

The investment includes the agreed acquisition of Powertech Semiconductor Xi’an’s packaging equipment, Micron said on its official WeChat account today. The Boise-based firm also plans to build a new workshop at the Xi’an plant and bring in brand new high-performance packaging and testing gear.

The investment will enhance Micron’s flexibility to make a diverse product portfolio in Xi’an, allowing the firm to directly operate its packaging and testing business at the plant, it said. The new workshop will have new production lines to make mobile dynamic random-access memory, NAND and solid-state drive products so as to boost the plant’s packing and testing capabilities.

Micron has been preparing the projects for some time and has started the work of accreditation for making mobile DRAM in Xi’an, it said. “We are delighted to be able to move forward with this key project,” said Betty Wu, general manager of Micron China.

“After the workshop is ready, we will gradually introduce new equipment and process to Xi’an,” she said. “The acquisition of assets of Powertech Semiconductor Xi’an enables Micron’s Xi’an plant to directly operate all packaging and testing businesses.

“We are quite grateful for the close cooperation between Powertech Semiconductor Xi’an and Micron,” Wu added.

Under a long-term strategic deal previously reached, Powertech Semiconductor Xi’an’s equipment has been running at workshops wholly-owned by Micron since 2016. Micron expects the acquisition to wrap up in about a year, subject to regulatory approval.

The investment will increase Micron’s staff in China to over 4,500, per the statement.

Editor: Peter Thomas