Investment
Micron says it is committed to China, invests $602 million in plant
SHANGHAI, June 16 (Reuters) – U.S. memory chipmaker Micron (MU.O) said on Friday it was committed to China and would invest 4.3 billion yuan ($603 million) over the next few years in its chip packaging facility in the Chinese city of Xian.
The company has been targeted by China’s cyberspace regulator, which last month said the firm, the United States’ biggest memory chipmaker, had failed a network security review and that the regulator would block operators of key infrastructure from buying from the company.
Micron made no mention of the review’s decision in its Friday statement, posted on WeChat.
“This investment project demonstrates Micron’s unwavering commitment to its China business and team,” it quoted CEO Sanjay Mehrotra as saying.
The investment will include buying packaging equipment from a Xian-based subsidiary of Taiwan’s Powertech Technology Inc (6239.TW), which Micron has been using in the factory since 2016, the company said.
Micron will also open a new production line at the site to manufacture mobile DRAM, NAND and SSD products to strengthen the plant’s packaging and testing capabilities.
Powertech said in a separate statement that the plan for Micron to buy the equipment was part of the 2016 agreement between the firms, so the financial impact on Powertech would be limited.
Micron, China’s commerce ministry and the Cyberspace Administration of China did not immediately respond to requests for comment.
Micron did not disclose the value of the deal but said it would offer contracts to 1,200 employees of Powertech’s Xian subsidiary and that the investment would create an additional 500 jobs.
This would bring Micron’s workforce in China to more than 4,500 people, the company added.
Micron in May forecast a hit to revenue in the low-single to high-single digit percentages after the China ban. A Reuters review of more than 100 public government tenders found that Chinese authorities were scaling back purchases of Micron’s chips before the ban.
($1 = 7.1337 yuan)
Economy
S&P/TSX composite down more than 200 points, U.S. stock markets also fall
TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.
The S&P/TSX composite index was down 239.24 points at 22,749.04.
In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.
The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.
The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.
The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.
This report by The Canadian Press was first published Sept. 6, 2024.
Companies in this story: (TSX:GSPTSE, TSX:CADUSD)
The Canadian Press. All rights reserved.
Economy
S&P/TSX composite up more than 150 points, U.S. stock markets also higher
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.
The S&P/TSX composite index was up 171.41 points at 23,298.39.
In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.
The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.
The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.
The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.
This report by The Canadian Press was first published Aug. 29, 2024.
Companies in this story: (TSX:GSPTSE, TSX:CADUSD)
The Canadian Press. All rights reserved.
Investment
Crypto Market Bloodbath Amid Broader Economic Concerns
-
Sports23 hours ago
Dolphins will bring in another quarterback, while Tagovailoa deals with concussion
-
Sports18 hours ago
Edmonton Oilers sign defenceman Travis Dermott to professional tryout
-
News23 hours ago
Unifor says workers at Walmart warehouse in Mississauga, Ont., vote to join union
-
Sports18 hours ago
Canada’s Sarah Mitton captures shot put gold at Diamond League in Brussels
-
Sports11 hours ago
Kirk’s walk-off single in 11th inning lifts Blue Jays past Cardinals 4-3
-
Tech21 hours ago
United Airlines will offer free internet on flights using service from Elon Musk’s SpaceX
-
Media22 hours ago
What to stream this weekend: ‘Civil War,’ Snow Patrol, ‘How to Die Alone,’ ‘Tulsa King’ and ‘Uglies’
-
Business21 hours ago
Roots sees room for expansion in activewear, reports $5.2M Q2 loss and sales drop