New Delhi: Micron Technology Inc. is close to an agreement to commit at least $1 billion 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,
Bloomberg reported.
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, one of the people said. The details could change as discussions are in progress, and there’s no guarantee an agreement will be finalised.
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 Advisor 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 more in its Chinese plant to create jobs and support the local market.