Micron is considering building a chip packaging facility in India

Micron is considering building a chip packaging facility in India

Attempts by Indian authorities to lure semiconductor component makers to the country to localize production of such products have so far been unsuccessful, but regular rumors on the matter raise hopes of a Micron Technology company to test and package memory chips could in this South Asian country. The project envisages investments of 1 to 2 billion US dollars.

    Image source: Micron Technology

Image source: Micron Technology

According to the agency BloombergNegotiations on this issue are currently being conducted by Micron’s leadership with the Indian government and are nearing a successful conclusion. Indian Prime Minister Narendra Modi could make a statement to that effect when he visits the US next week or later. Micron Technology is willing to invest at least $1 billion to build a core business in India, and if the project is successful, the amount could increase to $2 billion.

On the one hand, this project will benefit the Indian authorities, who have long been trying to attract relatively modern, high-tech companies to their territory. On the other hand, the initiative may be interesting for Micron given the looming restrictions on selling its products in neighboring China, but the company has already proven today that it will not limit investments in the Chinese economy. Local regulators recently ruled Micron’s products unsuitable for use in critical information infrastructure facilities. That hasn’t stopped Micron from spending $603 million to modernize and expand its memory chip testing and packaging facility in Xi’an, China.

Indian authorities have allocated US$10 billion to subsidize the establishment of chip-making companies in the country. They are willing to cover up to half of the investors’ costs. It’s difficult to say whether the Micron facility will meet the necessary criteria to receive subsidies. The country’s authorities traditionally focus on organizing more complex industries than chip testing and packaging, but the Micron project will also fit as a first step.

About the author

Dylan Harris

Dylan Harris is fascinated by tests and reviews of computer hardware.

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