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Experience is more important than money: Micron does not believe in the imminent success of Chinese memory manufacturers and is not afraid of competition with them
The South Korean company SK Hynix, as it became known the day before, considers the investment in Kioxia as a kind of protection against the future strengthening of the position of Chinese competitors in the world market. Micron Technology representatives do not share such concerns yet, claiming that not everything in this type of business is solved by money.
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In an interview with the Nikkei Asian Review, Micron Technology Executive Vice President Manish Bhatia said that even “deep pockets” will prevent Chinese memory manufacturers from quickly taking their rightful place in the global market, although the American company sees all competitors as equals. Micron has more than forty years of experience in developing and releasing memory, such competencies cannot be acquired overnight, Bhatia said.
For Chinese newbies, the situation is further complicated by the fact that they have to catch up with a constantly moving target. As soon as they advance to a new stage, they will again have to make up for the gap with the leaders. For Micron itself, the Chinese market continues to be very important, the company receives up to 20% of total revenue in this country. Micron has manufacturing facilities and research centers here.
The company remains the third largest manufacturer of RAM chips in the world, and in the solid-state memory market it is content with the fourth position. In the near future, Micron will have to compensate for the drop in revenue due to the possible exclusion of Huawei Technologies from the number of regular customers. The company applied for an export license in the United States, but as of this Monday, the status of this application has not been determined. Micron expects that if the pandemic can be curbed within a reasonable time, the economy will begin to revive in 2021. The widespread use of automation tools and artificial intelligence, as well as compliance with additional sanitary safety measures at enterprises, helped to minimize the damage from the introduction of self-isolation of the company.