The American company Micron announced its intention to invest 4.3 billion yuan ($603 million) over the next few years in its chip packaging plant in the Chinese city of Xian. This is reported by Reuters with reference to the manufacturer’s 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 company’s investment will involve the purchase of packaging equipment from the Chinese branch of Taiwan’s Powertech Technology Inc, which Micron has used at the plant since 2016.

In addition, Micron will open a new line for mobile DRAM, NAND and SSD products to strengthen the plant’s packaging and testing capabilities.

In a separate statement, Powertech said the US manufacturer’s plan to buy the equipment was part of a 2016 deal between the companies, so the financial impact on Powertech would be limited.

The chip maker did not disclose the value of the deal, but said it will offer contracts to 1,200 Powertech workers in Xian, and the investment will create an additional 500 jobs. Thus, the number of Micron employees in China will exceed 4,500 people.

We will remind that recently the Chinese authorities announced a ban on the supply of products of the American manufacturer of memory chips Micron to critical infrastructure objects. The move is seen as the first significant retaliation against Washington’s export controls.