Micron is close to investing $1 billion in an Indian chip packaging facility

16 Jun 2023 , 12:24 PM

News reports say that Micron Technology Inc. is close to committing at least $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.

The reports indicated that an announcement might be made as soon as the Prime Minister of India, Narendra Modi, visits the United States the following week. One of the reports indicated that the amount of money committed may reach $2 billion. There is no assurance that an agreement will be finalized, and the specifics may alter as conversations proceed.

The agreement would support Modi’s ambitious ‘Make in India’ aspirations while giving Washington a chance to fortify vital supply networks that aren’t connected to China. According to US National Security Advisor Jake Sullivan, removing obstacles to technical exchange between the two nations would be a major focus of Modi’s official visit on Tuesday in New Delhi.

The Chinese decision to forbid the use of Micron chips in what Beijing deemed essential infrastructure would precede the Indian investment, raising questions about the position of US chipmakers in the largest semiconductor market in the world. Micron promised to invest an additional $600 million in its Chinese plant on Friday in order to help the local economy and generate jobs.

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