Micron is close to investing US$ 1 billion in an Indian chip packaging facility
- IBEF
- June 19, 2023
People with knowledge of the situation say that Micron Technology Incorporation is close to committing at least US$ 1 billion to build a semiconductor packaging factory in India, a move that would further expand its geographic reach at a time when US tensions with China are high. An announcement might be made as soon as the Prime Minister of India, Mr. Narendra Modi, visits the US. One of the participants indicated that the amount of money committed may reach US$ 2 billion.
This deal would mark a win for Prime Minister Mr. Narendra Modi’s ambitious “Make in India” plans, while offering Washington an opportunity to strengthen key supply chains outside of China. The Indian investment would follow a Chinese ban on the use of Micron chips in what Beijing called critical infrastructure, a move that cast uncertainty over the status of US chipmakers in the world’s largest semiconductor market. Micron pledged to invest US$ 600 million more in its Chinese plant to create jobs and support the local market.
As escalating Chinese tensions raise concerns about the world's reliance on Asian manufacturing hubs like Taiwan, the US is attempting to diversify advanced chipmaking. The top memory chip manufacturer in the US, Micron, has also received funding backing for a US$ 3.6 billion next-generation plant it plans to build in Japan.
To entice chipmakers to India, Modi has promised to invest US$ 10 billion and vowed that his administration will pay for half the cost of establishing all semiconductor plants.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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