On March 23, Wang Wentao, Minister of Commerce of China, met with Sanjay Mehrotra, President of Micron Technology. The two parties exchanged views on Micron's development in China and other issues. Mehrotra said that he plans to expand investment in China.

Wang Wentao said that the Chinese government's vigorous development of new productive forces and in-depth promotion of innovative development of the digital economy will provide broad development space for Micron and other companies from various countries. Micron is welcome to continue to delve into the Chinese market, accelerate the implementation of investment projects in China, and effectively abide by China’s regulations. laws and regulations.

Mehrotra introduced Micron's business and new investment projects in China, saying that it will strictly abide by Chinese laws and regulations and plans to expand investment in China to meet the needs of Chinese customers.

It is reported that this is Mehrotra's second visit to China in the past six months. On November 1 last year, Mehrotra paid a visit to Wang Wentao. At that time, while introducing Micron's business development, Mehrotra expressed his willingness to continue to expand investment in China. This is also seen as Micron's efforts to solve the problem of product purchases being restricted in the Chinese market due to "security risks."

On March 31, 2023, China's Cybersecurity Review Office announced that it would conduct a cybersecurity review of Micron’s products sold in China. On May 21, 2023, the China Cybersecurity Review Office made a "conclusion that Micron products will not pass the cybersecurity review" and required critical information infrastructure operators to stop purchasing Micron products.

On June 16, 2023, Micron announced plans to invest more than RMB 4.3 billion in its packaging and testing plant in Xi'an in the next few years to upgrade and expand its production lines. The investment project will also create an additional 500 jobs, bringing Micron's total number of employees in China to more than 4,500. This move is considered to be Micron's initiative to show goodwill to China in order to preserve its market share in China.

Micron later said in a filing: "Certain critical information infrastructure operators or Chinese government representatives are contacting several Micron customers, including mobile device OEMs, to learn about future use of Micron products."

Micron warned in the filing: "Micron's revenues from companies headquartered in China and Hong Kong, including direct sales and indirect sales through distributors, which account for approximately one-quarter of Micron's global revenues, remain a major risk exposure. We About half of Chinese client revenue is now thought to be at risk."

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