Benzinga - by Anusuya Lahiri, Benzinga Editor.
Micron Technology, Inc (NASDAQ:MU) CEO Sanjay Mehrotra met with China’s Minister of Commerce, Wang Wentao, on March 23 to discuss Micron’s future development within China.
During the meeting, Wang Wentao expressed the Chinese government’s support for Micron, encouraging the company to deepen its operations and expedite new investment projects in the country.
Mehrotra outlined Micron’s ongoing business endeavors and upcoming investment initiatives in China, committing to comply with Chinese laws and regulations, Technode reports.
Additionally, he announced plans to enhance Micron’s investments to cater to the needs of Chinese consumers more effectively.
This meeting marks Mehrotra’s second visit to China in almost six months, following an earlier discussion on November 1, 2023, showcasing the ongoing dialogue and Micron’s commitment to expanding its presence in the Chinese market.
Recent reports indicated that China had introduced new guidelines to eliminate U.S. microprocessors from Intel Corp (NASDAQ:INTC) and Advanced Micro Devices, Inc (NASDAQ:AMD) in government computers and servers, favoring domestic technology.
These procurement regulations are part of China’s effort to substitute foreign technologies with local innovations. They include plans to replace Microsoft Corp’s (NASDAQ:MSFT) Windows operating system and foreign database software with Chinese alternatives.
In 2023, Chinese chipmaker Yangtze Memory Technologies Co initiated a lawsuit against its American counterpart, Micron, accusing it of violating eight patents.
The lawsuit alleged that Micron was using Yangtze Memory Technologies’ patented technology to maintain its competitive edge and secure its market position without adequately compensating for using these patented inventions.
Micron, known for manufacturing DRAM and NAND flash memory chips, competes with global giants such as South Korea’s Samsung Electronics Co, SK Hynix, and Japan’s Kioxia.
Micron stock gained over 101% in the last 12 months. Investors can gain exposure to the stock via REX FANG & Innovation Equity Premium Income ETF (NASDAQ:FEPI) and Invesco Semiconductors ETF (NYSE:PSI).
Mizuho analyst Vijay Rakesh reiterated Micron with a Buy and raised the price target from $124 to $130.
Price Action: MU shares closed higher by 1.43% at $118.80 on the last check Tuesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo courtesy of Micron
Latest Ratings for MU
| Feb 2022 | Wedbush | Upgrades | Neutral | Outperform |
| Jan 2022 | Goldman Sachs | Maintains | Buy | |
| Jan 2022 | New Street Research | Initiates Coverage On | Buy |
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