American chipmaker Micron mulls large investment in India

American chipmaker, Micron Technology, is in the process of deciding whether to make a $1 billion-$2 billion investment in a chip packaging plant in India.

American chipmaker, Micron Technology, is in the process of deciding whether to make a $1 Bn-$2 Bn investment in a chip packaging plant in India, a source familiar with the discussions told The Hindu. A final decision has not yet been made, the source emphasised, but if the company decided to go ahead then an announcement could be made during Prime Minister Narendra Modi’s visit to Washington DC next week.

The state visit is heavily focused on defence and advanced technology with two defence deals likely to be concluded — one, for 31 MQ-9 B Predator drones from General Atomic and the other, for the co-production of General Electric’s 414 jet engines in India with Hindustan Aeronautics Limited (HAL). The potential tech deals are based on a new bilateral platform launched earlier this year — the Initiative on Critical and Emerging Technologies (ICET), headed by the two countries’ national security advisers, Ajit Doval and Jake Sullivan. Commerce Minister Piyush Goyal and U.S. Commerce Secretary Gina Raimondo had, in March, signed an MoU in New Delhi to establish a ‘Semiconductor Supply Chain and Innovation Partnership’. Simultaneously, the U.S. has been working with allies to put the breaks on China’s access to cutting edge semiconductor technology, with manufacturers looking for other opportunities in countries such as India.

As news of this potential Micron investment in India broke, the company also announced its “unwavering commitment” to China, as per a Reuters report, with a $603 investment in its chip packaging plant in Xian. The Chinese authorities had, on May 21, said they would stop Chinese infrastructure companies from purchasing from Micron, after the company failed a network security assessment.

The Hindu has reached out to Micron Technology for comment.