The Indian cabinet has granted approval for U.S. chipmaker Micron Technology to proceed with its $2.7 billion plan for a semiconductor testing and packaging unit, a senior government official said, while Prime MInister Narendra Modi reached the United States.
The cabinet has also sanctioned production-linked incentives worth 110 billion rupees ($1.34 billion) for the plant, which is slated to be constructed in Gujarat, the official, who didn't wish to be identified, told Reuters.
An official announcement is expected during Modi's ongoing visit to the U.S.
The necessity for cabinet approval stems from the significant size of the incentive package, the source told Reuters. While reports of Micron's plan had surfaced previously, the likely cabinet approval is a notable development.
When contacted for comments, representatives from Micron, as well as the Indian government, including the technology ministry, did not respond, Reuters said.
During his visit, which commenced on Tuesday, PM Modi is scheduled to hold meetings with top executives from prominent American companies, including FedEx and MasterCard. Additionally, he will be honored at a state dinner hosted at the White House on June 22.
Micron Technology's venture coincides with the White House's efforts to encourage U.S. chip companies to invest in India. Discussions about potential further investments are ongoing, as conveyed by officials from the U.S. administration to Reuters.
One U.S. official stated that President Biden aims to reduce the risks associated with conducting business in China for domestic companies while fostering closer integration between the U.S. economy and that of the world's largest democracy.
Read more at: https://economictimes.indiatimes.com/news/india/india-clears-2-7-billion-micron-chip-testing-plant-ahead-of-modi-us-visit-report/articleshow/101142504.cms
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