China: Micro launched the first chip factory

Micron Technology Inc., one of the world's largest memory chip makers, has just launched its first chip factory in China.

Micro's Xi'an factory will be used to test and contribute DRAM, NAND and image sensors.

It is expected that next year, Xi'an will be able to operate at full capacity, then the total investment will be 250 million USD, and there are 2,000 local workers. It is known that Xi'an is Micro's second chip manufacturing facility in Asia. The chip factory was previously located in Singapore.

Recent trends show that more and more high-tech factories are built in China to take advantage of abundant cheap human resources and government incentive policies.

Chip packaging and testing are considered the most labor intensive parts in the chip manufacturing process. About 20% of the cost of building chip manufacturing facilities is spent on manpower, while only 5% is for equipment. Chip packaging is the last step in the manufacturing process, whereby the chip will be sealed in protective boxes to become finished products.