Micron Technology is nearing an agreement to invest a minimum of $1 billion in establishing a semiconductor packaging facility in India. This strategic move aims to expand its geographic presence and diversify amidst increasing tensions between the US and China.
The deal is a win for Modi's "Make in India" plans and offers the US an opportunity to strengthen non-China supply chains. Micron's Chinese chip ban created uncertainty for US chipmakers, prompting Micron to invest $600 million more in its Chinese plant to support the local market.
Why it matters
Amid escalating tensions with China and concerns over dependence on Asian manufacturing hubs like Taiwan, the United States is actively promoting the diversification of advanced chip manufacturing. Micron, the largest American memory chipmaker, has obtained financial backing for its planned $3.6 billion next-generation facility in Japan.