Govt approves semiconductor testing and packaging unit planned by Micron

The Indian government has approved a semiconductor testing and packaging unit planned by American chipmaker Micron Technology Inc., coinciding with Prime Minister Narendra Modi’s U.S. visit, Reuters reported.

India has offered production-linked incentives worth $1.34 billion (Rs 11,000 crore) for the proposed $2.7-billion facility to be built in Gujarat, the report said citing unnamed officials. The cabinet has cleared the plan, it said.

The deal marks stronger technology ties between the U.S. and India amid American standoff with China on chip technology. While India is seeking technology transfer to boost manufacturing, the U.S. seeks to diversify its supply chains.

The Business Standard newspaper and Bloomberg earlier reported that Modi’s U.S. visit could ensure a $1 billion commitment from Micron to set up a semiconductor packaging factory. Bloomberg