Published -June 22th, 2023 @ 3:00 PM (GMT+2)

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Micron Technology Inc., a leading global semiconductor company, is cementing its global presence with a substantial investment in India. The US-based company has strategic plans to set up a semiconductor packaging factory in India, injecting a significant investment of up to $825 million in a new chip assembly and test facility in India, its first factory in the country.
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Micron announced that the construction of the new facility in Gujarat is expected to begin in 2023, and the project's first phase will be operational in late 2024. The project's second phase is expected to start toward the second half of the decade. The two phases together will create up to 5,000 new direct Micron jobs.
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Micron President and CEO Sanjay Mehrotra said, “I am grateful to the Indian government, and all of the officials involved that made this investment possible. Our new assembly and test location in India will enable Micron to expand our global manufacturing base and better serve our customers in India and around the world.”
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Micron's Strategic Diversification Amid Global Trade Tensions
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Micron's strategic decision aims to diversify its geographic presence amid the escalating US-China tensions and supports Modi's flagship "Make in India" initiative. This substantial investment could significantly enhance US-India technological trade while countering the effect of China's ban on Micron chips (October 2022), in its critical infrastructure.
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India Welcomes Micron's Semiconductor Assembly and Test Unit
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This initial investment of around $2.5 billion marks the first approval for an OSAT unit by the Indian government, supporting the nation's efforts to promote semiconductor manufacturing. This move is not only a diversification strategy for Micron but also aligns with India's focus on building a robust semiconductor ecosystem to attract industry heavyweights.
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Micron Technology Inc (NASDAQ:MU) stock closed at $65.80 on Wednesday, Jun 21.

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