Micron Technology CEO Sanjay Mehrotra recently visited China and both Samsung Electronics and SK Hynix are feeling uneasy. This is because a closer relationship between Chinese semiconductor companies and Micron Technology, one of the world’s three largest memory chip manufacturers, is likely to adversely affect the South Korean companies, although no immediate cooperation between them is on the horizon with the U.S.-China trade war going on.
YMTC, in the meantime, recently announced that it started the mass production of 64-layer 3D NAND-based 256 GB NAND flash chips. Although NAND flash market leaders such as Samsung Electronics, SK Hynix, Toshiba and Micron Technology still have the upper hand in the market, Chinese companies such as the subsidiary of China’s state-run Tsinghua Unigroup are likely to keep increasing their presence there. It is said that the CEO of Micron Technology is likely to discuss technical cooperation with Tsinghua Unigroup during the business trip.
It is also said that the business trip is for meetings with clients. At present, Micron Technology’s biggest client is Huawei and Inotera, a Taiwanese company owned by Micron Technology, is supplying its products to multiple companies in China. Micron Technology recently said that it would set up DRAM manufacturing facilities in Taiwan before the end of next year.
“Micron Technology has a lot of clients in China and the trip may be for demand survey prior to new investment or for technological cooperation with Chinese semiconductor companies,” said a local industry source, adding, “In either case, his trip is likely to affect the South Korean semiconductor industry to a significant extent.”