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Micron has begun making significant investment in China even though its sales have been blocked in the Chinese market. Apple’s new Apple Vision Pro has a significant number of components made in China. Some analysts say this is a sign that the U.S.-China power struggle is shifting from decoupling, which excludes China from global supply chains, to derisking, which mitigates Chinese risk.
Micron will invest 4.3 billion yuan (770 billion won or US$602 million) in upgrading semiconductor packaging and test equipment at its Xi’an plant in China over the next few years, the Financial Times (FT) reported on June 16. The U.S. semiconductor company announced the investment plan just weeks after the Chinese government imposed a ban on the sale of Micron chips in China.
The exact scope of the ban on Micron’s products has not been disclosed, but it has been reported that the U.S. chipmaker may be forced to leave the Chinese market.
On the other hand, an article in Taiwan’s Digitimes recently read, “While U.S.-China geopolitical tensions have accelerated a restructuring of global supply chains, Apple still relies heavily on and trusts its Chinese supply chain.” The supply chain for Apple’s Vision Pro includes seven Chinese companies and 11 Taiwanese companies, Digitimes reported.
The 11 Taiwanese companies include TSMC. Apple is more dependent on Taiwan than on China. Apple’s supply chain also includes Korean companies and Japanese companies. The Korean companies include Samsung Electronics and LG Electronics, while the Japanese companies include Sony.