PM Modi invites Micron to boost chip making in India: Key things to know

Prime Minister Narendra Modi, who is on a historic state visit to the United States, met with Micron Technology’s CEO Sanjay Mehrotra on Wednesday and invited the American chip maker to set up its semiconductor manufacturing in India. 

A statement by the Prime Minister’s Office said that the meeting took place in Washington DC.

“Prime Minister Shri Narendra Modi met Sanjay Mehrotra, CEO of Micron Technology on 21 June 2023 in Washington DC. The Prime Minister invited Micron Technology to boost semiconductor manufacturing in India. He noted that India can provide competitive advantages in various parts of the semiconductor supply chain,” read the PMO’s statement.

PM Modi’s meet-and-greet with Mehrotra comes a day after the Union Cabinet approved Micron’s Rs 22,500 crore investment plan for a new semiconductor testing and packaging plant in India.

PM Modi also met with the President and CEO of Applied Materials Gary E Dickerson and invited him to develop process technology and advanced packaging capabilities in India.

Micron’s new semiconductor plant in India

The Central government has introduced a production-linked incentive (PLI) scheme in order to promote India as an appealing investment destination for global semiconductor companies.

In fact, the government has already agreed to production-linked incentives worth over Rs 10,000 crore for Micron’s plant, which is expected to generate thousands of jobs. Micron is one of the biggest chipmakers in the United States.

Micron had recently found itself in the middle of a raging dispute over chip technology between the US and China.

Last month, Beijing alleged that Micron Technology had failed its network security review and barred operators of key infrastructure from purchasing products from the company.

India to turn into a semiconductor powerhouse

India is looking to play a larger role in the semiconductor industry by boosting its domestic chip sector.

Besides, US President Joe Biden’s administration is encouraging American chipmakers to decrease their dependence on China.

The manufacturing of semiconductors is strategically important as it is a critical component that powers many of the devices we use from refrigerators to smartphones.