Prime Minister Narendra Modi interacted with Micron Chairman and CEO Sanjay Mehrotra on the second day of his US visit in Washington. The meeting comes two days after Business Today reported that the cabinet has approved Micron’s plan to set up a test and assembly plant in India. This is a part of PM Modi’s scheduled interaction with top CEOs during his visit to the United States of America.
The Prime Minister invited Micron Technology to promote semiconductor manufacturing in India. He added that India can provide competitive advantages in various parts of the semiconductor supply chain.
“We anticipate huge opportunities in India,” says Sanjay Mehrotra, CEO of Micron Technology after meeting PM Modi in Washington DC. According to news reports, Mehrotra spoke about Prime Minister Narendra Modi’s vision for India and the vision of India by impressed with the progress being made. He also said, the two discussed a wide range of topics and are looking forward to more opportunities in India.
US-headquartered Micron Technology is a leading name in memory storage. And for Micron shortlisting India for its testing and packaging unit, it is a good start for its semiconductor mission in India. Industry veterans are hopeful that after Micron’s decision, more established names will seriously look at India.
Also, the test and packaging plant is an important step in the semiconductor manufacturing ecosystem. After wafers are made in wafer fabs or foundries, ATMP units cut, package, and test the wafers into chips so they can be used in electronic products.
And as per available information, Micron Technology plans to build a $2.7 billion semiconductor testing and packaging unit in Gujarat, and the government has agreed to a $1.34 billion production-linked incentive (PLI) for the plant.
According to information available with Business Today, Micron Technology was close to finalizing plans to set up ATMP – assembly, testing, marking and packing in July last year, following the government’s plan for semiconductors. Even their CEO Sanjay Mehrotra was to visit India in August 2022 and meet ministers in the Ministry of Electronics and IT.
However, people familiar with the matter confirmed that the plan was put on hold because of the US CHIPS Act, which offered huge incentives for semiconductor fabs. And in October 2022, following the US-CHIPS Act, Micron Technology announced its plans to invest up to $100 billion to build a mega-fab in Central New York.