Micron scouts for a spot for semiconductor packaging factory

American information storage options supplier Micron Expertise is exploring the opportunity of establishing a manufacturing facility to assemble computing reminiscence modules in India, three individuals conscious of its plans instructed.

The Boise, Idaho-based know-how firm has visited two states to finalise the situation of the brand new unit amid India’s drive to ignite the semiconductor and allied sectors, the individuals added.

Testing, Marking, and Packaging (ATMP) — inserting semiconductor wafers in casings and getting it prepared for transport — can be the primary node to be localised within the digital element’s provide chain.

With a faster turnaround on investments, the packaging phase might additionally make the nation an necessary node within the world provide chain of semiconductors, that are used from smartphones to high-end vehicles.

“Micron is into reminiscence modules which they’ll assemble in India,” a supply instructed on situation of anonymity. “Will probably be a pretty big funding and the inducement will come below the ATMP class. Gujarat and Tamil Nadu are on the radar.”

Micron continues to guage alternatives to strengthen its world manufacturing footprint, a spokesperson instructed, with out commenting particularly on its India manufacturing plans.

The corporate would proceed to interact usually with authorities companies, companions, commerce associations and consultants all through the world on a spread of subjects, the spokesperson added.

“Whereas we don’t focus on specifics of those engagements, we’re inspired by the steps India is taking to develop their semiconductor ecosystem, and we’re happy with the engineering and know-how growth operations that we have now been in a position to arrange at our Hyderabad and Bengaluru websites,” the spokesperson mentioned.

Micron joins a rising crop of multinationals trying to diversify its Southeast Asian footprint in a post-pandemic provide chain reshuffle that attracts manufacturing away from China.

The US firm has a number of operations – from design to system growth – managed throughout many places. Apart from America, its major R&D places embody Taiwan, China, and India.

In its 2021 annual report, Micron mentioned {that a} substantial portion of its operations are carried out in Taiwan, Singapore, Japan, Malaysia, China, and India, and that a lot of its prospects, suppliers, and distributors additionally function internationally.

Within the report, Micron had additionally identified the geo-political dangers involving Taiwan-China as a possible menace to provide chain stability.

“For instance, political, financial, or different actions from China might affect Taiwan and its economic system, and will adversely have an effect on our operations in Taiwan, our prospects, and the know-how business provide chain,” it had mentioned.

The truth is, Micron’s India-origin chief government Sanjay Mehrotra had co-founded SanDisk, the corporate that helped popularize flash reminiscence storage units.

The federal government final yr introduced a $10-billion incentive plan to spur the semiconductor provide chain, and a separate incentive part has been made for packaging.

Beneath this, 30% of capital expenditure can be picked up by central incentives for accredited models; the Centre expects over 15 approvals for compound semiconductors and semiconductor packaging.

In the US, Micron has lobbied for the passing of the $52-billion Chips Act, a subsidy to strengthen funding for semiconductor factories after an intense scarcity post-pandemic led to extreme affect on manufacturing of vehicles, devices, and different items.

Micron is amongst a number of firms aggressively pushing for the Chips Act, arguing that delay might push producers to different places, together with international locations in Southeast Asia. KhandeshTimes