US based semiconductor company, Micron Technology, is close to committing at least $1 billion towards setting up a semiconductor packaging factory in India, Bloomberg News report said.
The official announcement regarding this significant investment could be made during the upcoming visit of Prime Minister Narendra Modi to the United States this week. The report further said that the amount of money committed could go as high as $2 billion. The details could change as discussions are in progress, and however there’s no guarantee an agreement will be finalized.
The 44-years-old company, Micron Technology, is a semiconductor company that produces DRAM, SDRAM, flash memory, SSD and CMOS image sensing chips. The $38 billion company offers the industry's broadest portfolio of silicon-to-semiconductor solutions. Micron has 11 manufacturing sites spread across the US, Japan, Malaysia, Singapore, Taiwan and China.
Recently, Micron announced an investment of up to $100 billion over the next 20 Years to construct a new Mega Fab In Clay, New York. With the first Phase of investment of $20 billion planned by the end of this decade.
Earlier this month, Indian media reports also suggested that Modi-led central government has started discussions with US-based Micron Technology to go beyond setting up an Assembly Testing Marking and Packaging (ATMP) facility in India to include a fabrication, or fab, plant.
Micron also said that it was committed to China and would invest 4.3 billion yuan ($603 million) over the next few years in its chip packaging facility in the Chinese city of Xian. This comes despite the fact that China, which is world’s largest semiconductor market, has put a ban on the use of Micron chips in what Beijing called critical infrastructure.
Notably, China has put a ban on using Micron’s products as Chinese authorities announced in late May that Micron failed a cybersecurity review and warned operators of critical infrastructure in the country against buying Micron’s products.
Post this ban, the US is looking at India to strengthen key supply chains outside of China.
In addition, Prime Minister Modi has also pledged $10 billion to woo global chipmakers to India, promising his administration will bear half the cost of setting up all semiconductor sites.
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