Micron Technology is close to an agreement to commit at least $1 billion (roughly Rs. 8,200 crore) toward setting up a semiconductor packaging factory in India, according to people with knowledge of the matter, a move to further diversify its geographic footprint at a time of US tensions with China.
An announcement could be made as soon as when Prime Minister Narendra Modi visits the US next week, said the people, who asked not to be identified because the details are private. The amount of money committed could go as high as $2 billion (roughly Rs. 16,400 crore), one of the people said. The details could change as discussions are in progress, and there’s no guarantee an agreement will be finalized.
The deal would mark a win for Modi’s ambitious “Make in India” plans, while offering 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 on Tuesday.
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 (roughly Rs. 4,900 crore) more in its Chinese plant to create jobs and support 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.
The US is pushing to diversify advanced chipmaking as growing Chinese tensions spur concerns about the world’s reliance on Asian manufacturing centers such as Taiwan. Micron, the largest American memory chipmaker, also secured financial support for a $3.6 billion (roughly Rs. 29,500 crore) next-generation plant it aims to establish in Japan.
Modi starts his first formal state visit June 21, with President Joe Biden hosting him for a banquet the following day. The Indian leader will also address the US Congress. Modi has pledged $10 billion (roughly Rs. 81,900 crore) to woo chipmakers to India, promising his administration will bear half the cost of setting up all semiconductor sites.
The Business Standard newspaper had previously reported Micron was set to get Indian government approval for a $1 billion (roughly Rs. 8,200 crore) assembly and packaging facility in India.
© 2023 Bloomberg LP
Apple unveiled its first mixed reality headset, the Apple Vision Pro, at its annual developer conference, along with new Mac models and upcoming software updates. We discuss all the most important announcements made by the company at WWDC 2023 on Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
Affiliate links may be automatically generated – see our ethics statement for details.
For all the latest Technology News Click Here
For the latest news and updates, follow us on Google News.
Denial of responsibility! NewsBit.us is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – [email protected]. The content will be deleted within 24 hours.
