In an effort to further expand its geographic reach amid tensions between the US and China, sources claim that Micron Technology Inc. is close to agreeing to contribute at least $1 billion towards the construction of a semiconductor packaging factory in India.
According to the sources, who requested anonymity since the information is confidential, an announcement may be made as soon as the Prime Minister of India, Narendra Modi, visits the US the following week. One of the individuals claimed that the financial commitment may reach $2 billion. There is no assurance that an agreement will be finalized as talks are ongoing and the specifics could alter.
The agreement would be a victory for Modi’s ambitious “Make in India“ goals while providing Washington with a chance to fortify important supply chains outside of China. US National Security Advisor Jake Sullivan stated in New Delhi on Tuesday that lowering obstacles to technical exchange between the two nations is a crucial component of Modi’s state visit.
The Indian investment would come after China forbade the use of Micron chips in what Beijing deemed key infrastructure, a decision that raised questions about the position of US chipmakers in the largest semiconductor market in the world. In order to boost the local market and generate jobs, Micron promised on Friday to invest an additional $600 million in its Chinese facility.
Requests for feedback from the Indian Ministry of External Affairs and the Ministry of Technology went unanswered, and a Micron spokesperson declined to provide any additional information.
In response to escalating Chinese tensions that are raising questions about the global reliance on Asian manufacturing hubs like Taiwan, the US is attempting to diversify the advanced chipmaking industry. The biggest American memory chipmaker, Micron, has also received funding backing for a $3.6 billion next-generation factory it plans to build in Japan.
President Joe Biden will welcome Modi for a banquet the day after his first official state visit, which begins on June 21. In addition, the Indian prime minister will address the US Congress. With the promise that his administration will cover half the cost of establishing all semiconductor sites, Modi has committed $10 billion to entice chipmakers to India.
A $1 billion assembly and packaging facility in India was earlier reported by Business Standard to be receiving official approval from India.
