Chipmaker Micron thinking upon investing $1 Bn in India: Report

American chipmaker, Micron Technology is mulling on investing a $1 Bn in a chip packaging plant in India, a source familiar with the matter said to a daily. The source also mentioned that the decision is yet to be made but if the company decided to go ahead then an announcement could be made during Prime Minister Narendra Modi’s visit to Washington DC next week.

 

With this deal, Modi’s “Make in India” plans will get a major boost and it will also offer Washington an opportunity to strengthen key supply chains outside of China. Removing barriers to technological trade between the two countries is a key part of Modi’s state visit, US National Security Adviser Jake Sullivan said in New Delhi.

 

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. On Friday, Micron pledged to invest $600 million more in its Chinese plant to create jobs and support the local market.

 

The US is keen to diversify advanced chipmaking due to mounting Chinese tensions that raises concern about the world’s reliance on Asian manufacturing centers such as Taiwan. Micron also secured financial support for a $3.6 billion next-generation plant it aims to establish in Japan.