- Prime Minister Narendra Modi, who arrived in Washington DC on Wednesday, met Sanjay Mehrotra, President-CEO of Micron Technology
- The construction of the new facility in Gujarat is expected to begin in 2023 and the first phase of the project will be operational in late 2024
- India had reopened the application process for chip incentives worth $10 billion under the Indian Semiconductor Mission (ISM)
NE BUSINESS BUREAU
WASHINGTON, NEW DELHI, JUNE 22
Thank you for hospitality, @POTUS @JoeBiden and @FLOTUS @DrBiden. pic.twitter.com/m1z2GcHrw9
— Narendra Modi (@narendramodi) June 22, 2023
US memory chip firm Micron Technology, Inc said on Thursday it would invest up to $825 million in a new chip assembly and test facility in Gujarat, India, its first factory in the country. With this announcement, Gujarat will have two semiconductor facilities in Dholera SIR, including Vedanta-Foxconn unit which is awaiting Central clearance.
PM @narendramodi held a meeting with President and CEO of @MicronTech Sanjay Mehrotra in Washington DC. They discussed the opportunities pertaining to manufacturing of semiconductors in India. pic.twitter.com/LwKp2FPhj0
— PMO India (@PMOIndia) June 22, 2023
Prime Minister Narendra Modi, who arrived in Washington DC on Wednesday, met Sanjay Mehrotra, President-CEO of Micron Technology.
Micron said that with support from the Indian government and from the state of Gujarat, the total investment in the facility will be $2.75 billion. Of that total, 50 percent will come from the Indian government and 20 percent from Gujarat Government.
Reuters had reported earlier this week that India’s Cabinet approved the project ahead of Prime Minister Narendra Modi’s state visit to the US, which kicked off on Wednesday.
Micron said construction of the new facility in Gujarat is expected to begin in 2023 and the first phase of the project will be operational in late 2024. A second phase of the project is expected to start toward the second half of the decade, it said. The two phases together will create up to 5,000 new direct Micron jobs.
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The government had announced a Production-Linked Incentive (PLI) worth $10 billion in 2021. The scheme was aimed at encouraging semiconductor and display manufacturing in the country.
India had reopened the application process for chip incentives worth $10 billion under the Indian Semiconductor Mission (ISM) as three entities which had applied to build chips in India were facing challenges in setting up their manufacturing units. This impacted the country’s chip manufacturing ambitions of becoming a major player in the global semiconductor market in the next five years.
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PM expresses optimism after Gujarat signs MoU with Vedanta-Foxconn Group for semiconductor mfg
The Micron plant in India would aid PM Modi’s vision of making India a global hub for semiconductors as it aims to bolster semiconductor manufacturing.
Recently, India and the US have signed a Memorandum of Understanding (MoU) on establishing the Semiconductor Supply chain during India – USA 5th Commercial Dialogue 2023, which can help India realize its long-nurtured dream of becoming a hub for electronic goods.
The MoU seeks to establish a collaborative mechanism between the two governments on semiconductor supply chain resiliency and diversification in view of the US’s CHIPS and Science Act and India’s Semiconductor Mission.
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AtmaNirbhar Bharat: Gautam Adani seeks US help for semiconductor manufacturing in India
The US and China are giants in chip manufacturing. So, this pact with the US to strengthen cooperation in the semiconductor sector to facilitate commercial opportunities and the development of innovation ecosystems is likely to help India immensely.
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According to media reports, China’s chip imports fell 23 per cent in the first quarter of 2023.
Domestic production is PM Modi’s top priority for the country’s economic strategy as he wants to “usher in a new era in electronics manufacturing” by getting global companies in India. Chip manufacturing in India would enable it to reduce reliance on imports, especially from China and build a robust electronics supply chain.
The Indian chip making market is expected to reach $55 billion by 2026 and may generate six lakh employment opportunities by 2030, according to a report by Deloitte on semiconductor industry outlook. The country would become a major player in the 5G revolution and wearables, automotive components and computing and data storage would account for 60 per cent of the total semiconductor market.
GE inks pact with HAL to produce fighter jet engines in India
GE Aerospace on Thursday said it has inked a pact with Hindustan Aeronautics Limited (HAL) to jointly produce fighter jet engines for Indian Air Force’s Light Combat Aircraft (LCA)-Mk-II—Tejas.
PM @narendramodi held productive discussions with CEO of @generalelectric, H. Lawrence Culp, Jr. They discussed GE’s greater technology collaboration to promote manufacturing in India. pic.twitter.com/v116lzVuaR
— PMO India (@PMOIndia) June 22, 2023
The announcement came during Prime Minister Narendra Modi’s first state visit to the US at the invitation of President Joe Biden.
The agreement includes the potential joint production of GE Aerospace’s F414 engines in India, and GE Aerospace continues to work with the US government to receive the necessary export authorisation for this,” the US firm said in a statement.
It described the Memorandum of Understanding with HAL as a key element in strengthening defence cooperation between India and the US.
This is a historic agreement made possible by our longstanding partnership with India and HAL, said H Lawrence Culp Jr, Chairman and Chief Executive Officer of GE and CEO of GE Aerospace.
President & CEO of @Applied4Tech, Mr. Gary E. Dickerson, had a meeting with PM @narendramodi in Washington DC. They discussed ways to strengthen the semiconductor ecosystem in India. pic.twitter.com/y34TIcwtuh
— PMO India (@PMOIndia) June 22, 2023
PM meets Gary E Dickerson, CEO, Applied Materials
Prime Minister Narendra Modi met Gary E Dickerson, President and CEO of Applied Materials in Washington DC.
Gary E. Dickerson, the President and CEO of Applied Materials, expressed his belief that it is India’s time to drive remarkable growth and shine.
Dickerson said, “I deeply believe this is India’s time to shine. We will be announcing soon an innovation centre in India that will focus on innovation in equipment. We have very high confidence that working together with India, we can create tremendous success.” Acknowledging that India is a trusted partner, he recognized the exceptional talent that India possesses, which is appreciated by many countries worldwide.
He said, “This is India’s time to drive incredible growth. And applied is looking forward to working together with PM Modi and everyone in India to achieve tremendous success together. India is a trusted partner and many countries around the world to see the trust and tremendous talent that India has,” he added.
“I am just so impressed with India and I believe that the opportunity for India’s growth in the semiconductor industry is now,” Dickerson added.
Prime Minister invited Applied Materials for contributing in strengthening the semiconductor ecosystem in India. Prime Minister also invited Applied Materials for development of process technology and advanced packaging capabilities in India.
Prime Minister and Dickerson discussed potential of Applied Materials’ collaboration with academic institutions in India to create skilled workforce.
