Twenty-nine years ago, three young people in Idaho, USA, inadvertently started a chip design business called DRAM in a warehouse of a dentist's office. Today, it is a semiconductor company with annual sales of 5.26 billion US dollars - Micron.
On March 21, Micron officially launched its first manufacturing facility in China. This package test factory in Xi'an High-tech Development Zone has a total investment of 250 million US dollars.
Steve R. Appleton, President and CEO of Micron, accepted an exclusive interview with this reporter during the launch of the project. The young CEO is a typical adventurer with multiple private performances and likes to dive in the air.
However, in his view, this investment by Micron in China is not an adventure.
Run first and then run
: As far as we know, the main business of Micron's packaging testing is currently in Singapore. Why did you choose to establish a packaging and testing plant in China?
Steve: At present, the capacity of the Singapore packaging and testing plant accounts for 60%-70% of our total. The main reason for building a factory in China is that the Chinese market has a large capacity and is growing rapidly.
Before 1998, our sales were mainly in the US and only 20% in Asia. Now, in turn, the US share is only 20%. 60% of our memory products are sold to Asia, and the Chinese market accounts for 25%. Building a factory in China can make us closer to our customers.
At present, there are already many areas in the semiconductor industry with relatively perfect development in China, such as the Yangtze River Delta. But why did Micron choose the location of the factory in Xi'an?
Steve: We have been looking for a good location in the country and ran more than a dozen cities. Reasons for choosing Xi'an: First, because the stability of labor resources is very good, cultivating a technical talent in the semiconductor industry requires huge training costs. Once the brain draining enterprises, they will suffer great losses. Compared with the coastal areas, the brain drain rate in Xi'an is relatively low. The second reason is that as a semiconductor packaging and testing factory, both operators and senior engineers need to have a sound education and training system. Xi'an has many colleges and universities. The school can help Micron train a large number of talents.
In addition, for Micron, building a factory in China is a strange thing. We need strong support from the local government. The Xi'an government has really given us great support. The two sides have communicated very well, so we decided to choose Xi'an.
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