Chipmaker Micron, Contemplating on $1 Billion Investment in India

According to a trusted source, chipmaker Micron Technology is currently considering a substantial investment of $1 billion in establishing a chip packaging plant in India. The source further revealed that the decision has not been finalized yet; if Micron proceeds with the plan, an official announcement might be made during the upcoming visit of Prime Minister Narendra Modi to Washington DC.

With this deal, PM’s Make in India projects will get a major boost. Subsequently, 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 PM Modi’s state visit. The US National Security Adviser Jake Sullivan stated in New Delhi.

In the wake of a Chinese ban on the utilization of Micron chips in critical infrastructure; which raised uncertainties for US chipmakers in the world's largest semiconductor market. Consequently, the potential Indian investment gains significance. Beijing's decision prompted Micron to respond by committing an additional $600 million investment in its Chinese plant; aimed at generating employment opportunities and bolstering the local market.

Amid escalating tensions with China and growing apprehensions over the heavy reliance on Asian manufacturing hubs. For instance, Taiwan, the United States is determined to expand advanced chip production capabilities. Micron, recognizing the need for diversification, has taken steps to address this concern. The company not only obtained financial backing for a future-oriented plant worth $3.6 billion in Japan but also aims to establish it.