Finance

Micron Technology’s strategic moves in China, CEO Mehrotra’s talk and expansion plans


Micron Technology Corporation (NASDAQ:mu.) CEO Sanjay Mehrotra met with China’s Minister of Commerce Wang Wentao on March 23 to discuss Micron’s future development in China.

During the meeting, Wang Wentao expressed the Chinese government’s support for Micron Technology and encouraged the company to deepen its business and accelerate new investment projects in China.

Mehrotra outlined Micron Technology’s ongoing business activities and upcoming investment initiatives in China, and pledged to comply with Chinese laws and regulations, TechNode Technology Report.

In addition, he also announced plans to strengthen investment in Micron Technology to more effectively meet the needs of Chinese consumers.

The meeting was Mehrotra’s second trip to China in nearly six months, following a discussion on November 1, 2023, demonstrating ongoing dialogue and Micron’s commitment to expanding its presence in the Chinese market.

Recent reports indicate China has introduced new guidelines to phase out U.S. microprocessors Intel Corporation (NASDAQ:International Trade Centre) and AMD (NASDAQ:AMD) in government computers and servers, favoring domestic technology.

The procurement rules are part of China’s efforts to replace foreign technology with homegrown innovation, including plans to replace Microsoft’s (NASDAQ:Microsoft Corporation) Windows operating systems and foreign database software have Chinese alternatives.

In 2023, Chinese chip manufacturer Yangtze River Storage filed a lawsuit against American chip manufacturer Micron, accusing it of infringement of intellectual property rights.Infringement of eight patents.

The lawsuit alleges that Micron Technology used YMTC’s patented technology to maintain its competitive advantage and secure its market position without providing adequate compensation for the use of these patented inventions.

Micron is best known for making DRAM and NAND flash memory chips, competing with global giants such as South Korea’s Samsung Electronics, SK Hynix and Japan’s Kioxia.

Micron Technology stock is up more than 101% in the past 12 months.Investors can obtain investment in this stock through the following methods: REX FANG & Innovation Equity Premium Income ETF (NASDAQ:FEPI) and Invesco Semiconductor ETF (New York Stock Exchange:PSI).

Mizuho analyst Vijay Rakesh reiterated a buy rating on Micron Technology and raised the target price from $124 to $130.

Price Action: MU shares were up 1.43% at $118.80 at last check on Tuesday.

Disclaimer: This content is generated in part with the help of artificial intelligence tools, and is reviewed and published by Benzinga editors.

Photo courtesy of Micron

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This article Micron Technology’s strategic moves in China, CEO Mehrotra’s talk and expansion plans Originally appeared in Benzinga.com

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