The Government of India has approved the proposal of US-based chipmaker Micron Technology to set up a 2.7 billion dollar semiconductor testing and packaging unit. The approval from the government came during the state visit of Prime Minister Narendra Modi to the United States.
According to a senior government official, “The project was cleared about a week back”. Another official said, “Micron’s proposal has been cleared by the Union Cabinet and we expect that the decision will not only help strengthen India’s bid for setting up a wholistic semiconductor eco-system in the country, but will also help attract new players to look at the country favourably”.
Micron is a top semiconductor company in the world and specialises in computer memory products, flash drives etc. It is not confirmed, but Micron is planning to set up OSAT (outsourced semiconductor assembly and test) plant in the PM’s home state Gujarat. This plant is expected to create over 5,000 jobs.
After the Modi government modified the semiconductor programme, the OSAT proposal from Micron got approved. The government has also increased the incentives given to the companies, under which it’s reported that Micron will get incentives of around 110 billion rupees.
Before PM Modi’s arrival in the US, Chief Executive Officer (CEO) of Micron Technology, Sanjay Mehrotra, lauded PM Modi’s vision for India’s technological advancement on June 17.
‘We applaud Prime Minister @narendramodi’s vision for #India’s technological advancement and commitment to equitable development’
Appreciate @MicronTech President & CEO Sanjay Mehrotra’s insightful message on #Technology #Innovation #Economy #Semiconductors #Skills… pic.twitter.com/uY3LUVu9lR
— India in USA (@IndianEmbassyUS) June 17, 2023
In a video shared by the Embassy of India in the US, Mehrotra stated that he is looking forward to the state visit of PM Modi and added that he would like to extend a warm welcome to him.
Micron’s CEO stated, “We see much promise in India as part of our global footprint. Indians have made their mark in every field, be it in the private sector, academia or government, enriching the cultural fabric of countries worldwide”.
Sanjay Mehrotra further said that Prime Minister Modi’s actions to build India’s economy by investing in the skills of its young people are deeply appreciated. He said, “His support for the semiconductor industry and workforce development has fostered an environment of innovation, business growth and social progress”.
Sanjay Mehrotra lauded the vision of PM Modi, “We applaud the Prime Minister’s vision for India’s technological advancement and commitment to equitable development”.
Sanjay Mehrotra also emphasised that Micron is a leader in cutting-edge memory and storage technologies. He said, “More than 3500 engineering operations and technology specialists work in our R and D centres in Hyderabad and Bangalore, which are at the forefront of the semiconductor industry”.
This deal has boosted India Semiconductor Mission. It will boost India’s ambition to become a global electronics manufacturing and design hub. In the manufacturing of modern electronics, semiconductors are critical components in it. From autos and medical equipment to smartphones and laptops, they are utilised in various products to make integrated circuits, memory modules, and microprocessors in these products.
Last month on May 15, World’s largest technology manufacturer and Apple’s supplier Foxconn, planned to invest 500 million dollars to set up a manufacturing plant in Telangana, India. Foxconn has purchased 186.7 acres of land in Kongar Kalaan in Ranga Reddy district in Telangana to set up the manufacturing plant.
Foxconn CEO Sidney Liu flew down to Hyderabad for the deal. He said, “This manufacturing plant will require significant investment, and it will enable us to better serve our customers, expand capabilities and create new opportunities for our team members. We encourage new people to join our team, and cannot wait to see new local talent to work with us”.
It was reported that Apple has started relocating its manufacturing operations due to ongoing tensions between US and China, forcing them to rethink its overdependency on China. Its suppliers have started looking at India for better options. It was reported that due to the partial ban imposed by China, Micron took the step forward to diversify its supply chain in India.
