Categories: Business

GoI approved Micron’s $2.7 bn semiconductor packaging plant

The Indian cabinet has given its approval to US chipmaker Micron Technology’s plan to invest $2.7 billion to set up a semiconductor testing and packaging unit in Gujarat. The cabinet approval comes ahead of Prime Minister Narendra Modi’s visit to the United States.

The government will provide production-linked incentives worth Rs 11,000 crore ($1.34 billion) for the semiconductor plant. The report said Micron Technology’s plans come as the White House presses US chip companies to invest in India with talks ongoing about possible further investments. The Biden administration wants the US companies to decrease the risks of doing business in China while better integrating the United States economy with that of India, the report added citing US officials.

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Overview of the news

This investment is expected to boost India’s semiconductor industry and aligns with Prime Minister Modi’s vision of making India a global hub for semiconductor production.
The new facility is anticipated to create jobs and enhance India’s capabilities in the sector, contributing to its digital ambitions and self-reliance in advanced technologies.
According to the website of the US company, Micron is a world leader in innovative memory solutions that transform how the world uses information. For over 40 years, our company has been instrumental to the world’s most significant technology advancements, delivering optimal memory and storage systems for a broad range of applications, including automotive, mobile, data centre, and client.
The company plans to set up an OSAT (outsourced semiconductor assembly and test)) plant in India which will test and package its product to make it ready for use.
Micron’s plant is estimated to give job to 5,000 people.

Micron Technology’s plans come as the White House presses U.S. chip companies to invest in India with talks ongoing about possible further investments. Biden wants domestic companies to decrease the risks of doing business in China while better integrating the U.S. economy with that of the world’s largest democracy, the report mentioned. Neither Indian government nor company official has commented on the development.

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Sumit Arora

As a team lead and current affairs writer at Adda247, I am responsible for researching and producing engaging, informative content designed to assist candidates in preparing for national and state-level competitive government exams. I specialize in crafting insightful articles that keep aspirants updated on the latest trends and developments in current affairs. With a strong emphasis on educational excellence, my goal is to equip readers with the knowledge and confidence needed to excel in their exams. Through well-researched and thoughtfully written content, I strive to guide and support candidates on their journey to success.