India Greenlights Micron's $2.7B Chip Testing Plant during PM Modi's US Trip

Via Syndicated Feed

India Greenlights Micron's $2.7B Chip Testing Plant during PM Modi's US Trip

The Indian cabinet has given the green light to U.S. chipmaker Micron Technology's proposal to establish a $2.7 billion semiconductor testing and packaging unit. The plant, which is expected to be located in Gujarat, has also been granted production-linked incentives worth $1.34 billion. However, both Micron representatives and the Indian government have refrained from commenting on the matter.

The approval comes just ahead of Indian Prime Minister Modi's visit to the U.S., and an official announcement is anticipated during his trip. The cabinet's approval was necessary due to the substantial size of the incentive package.

A source within the industry who has knowledge about Micron's approvals disclosed that the company intends to establish a facility called the Assembly Testing Marking and Packaging Unit in Sanand (near Ahmedabad). This type of unit primarily conducts tests on and packaging semiconductor chips rather than engaging in chip manufacturing. In this plant, Micron will have the potential to handle the acquisition and packaging of chips for its clients. Additionally, they may offer testing services for chips belonging to other companies, ensuring their quality before they are sent out for delivery.

The insider from the industry emphasized that although the Micron agreement is in line with Modi's objective of establishing India as a semiconductor hub, achieving genuine success would necessitate the presence of actual chip manufacturing capabilities. Additionally, Biden aims to reduce the risks associated with conducting business in China for domestic companies while enhancing the integration of the U.S. economy with that of the world's largest democracy.

Earlier in May, China announced that Micron did not pass a "security review." As a result, operators of crucial domestic infrastructure were barred from buying products from Micron. This decision caused dissatisfaction within the Biden administration, even though the U.S. Commerce Department chose not to comment. 

On the other hand, Reuters recently reported that three prominent companies, including a joint venture involving Foxconn, faced difficulties in pursuing Indian semiconductor incentives due to the lack of a technology partner.

IndraStra Global Staff has not edited this story, which is auto-generated from a syndicated feed.

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IndraStra Global: India Greenlights Micron's $2.7B Chip Testing Plant during PM Modi's US Trip
India Greenlights Micron's $2.7B Chip Testing Plant during PM Modi's US Trip
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