Micron Technology Inc. to Conclude Agreement to Invest $1 Billion To Establish Semiconductor Packaging Factory in India
As reported by sources familiar with the subject, Micron Technology Inc. is nearing an agreement to invest at least $1 billion to the establishment of a semiconductor packaging factory in India, a move that would further broaden the company's regional footprint at a time when the US is at odds with China.
According to the persons who asked not to be identified because the specifics are private, an announcement might be made as soon as Prime Minister Narendra Modi visits the United States next week. According to one of the sources, the amount of money committed could reach $2 billion. Details may vary as conversations advance, and there is no assurance that an agreement will be reached.
The agreement would be a victory for Modi's ambitious "Make in India" goals, while also providing an opportunity for Washington to reinforce vital supply networks outside of China. Removing impediments to bilateral technical trade is a critical component of Modi's state visit, according to US National Security Adviser Jake Sullivan in New Delhi on Tuesday.
The Indian investment comes on the heels of a Chinese prohibition on the use of Micron chips in what Beijing refers to as essential infrastructure, a decision that has placed doubt on the future of US chipmakers in the world's largest semiconductor market. Micron announced on Friday that it will invest an additional $600 million in its Chinese plant to generate jobs and boost the local market.
India’s Technology Ministry and Ministry of External Affairs didn’t respond to requests for comment, while a representative for Micron declined to comment.