Micron's project approved as soon as PM Modi reaches US, semiconductor plant will be set up in Gujarat!

The source said that considering the package of PLI, cabinet approval was necessary. Micron's plan was reported earlier but not approved by the cabinet.

As it was expected for the past several days that the US chipmaker company Micron Technology can invest in India, it has finally been approved. While PM Narendra Modi is arriving in America, news has come that the cabinet in India has approved Micron's $ 2.7 billion i.e. Rs 22 thousand crore semiconductor plant. This plant is likely to be set up at Sanand in Gujarat. Earlier it was also reported that Micron would invest $1 billion, which was estimated to reach $2 billion. Quoting sources in the media report, it has been said that the Government of India will give $ 1.34 billion i.e. Rs 11 thousand crore as PLI to Micron for this plant.

Why cabinet approval was necessary

The source said that considering the package of PLI, cabinet approval was necessary. Micron's plan was reported earlier but not approved by the cabinet. No official statement has come out from the Ministry of Technology with the spokesperson of Micron and the Government of India. During his visit, which began on Tuesday, Modi will meet CEOs of several top US companies, including FedEx and Mastercard, and will host a state dinner at the White House on June 22.

US government pressure on American companies

Giving information to Reuters, US administration officials said that Micron Technology's plans have come to the fore when the White House is pressuring American chip companies to invest in India. A US official said Biden wants domestic companies to reduce the risk of doing business in China, while better integrating the US economy with the world's largest democracy. A senior Biden administration official said the White House is encouraged by the number of American firms considering investing in India.

Meanwhile, China said in May that Micron had failed a security review and barred operators of major domestic infra from buying products from the US's largest memory chipmaker, angering the Biden administration. The US Department of Commerce declined to comment on this.

Plant will do testing and packaging

If experts are to be believed, this unit of MICON will be set up at Sanand in Gujarat. Such units test and package semiconductor chips, but do not manufacture them. Micron can buy and package chips for customers in the plant, or other companies can send their chips for testing before shipping. The source said that Micron's Indian plant will strengthen India's semiconductor base, but manufacturing here is also very important for real success.