India Will Become A Semiconductor Manufacturer From Next Year
India will become a semiconductor manufacturer from next year, from 2024 the chip will be made in the country itself.
American semiconductor company Micron Technology will start making chips in India from next year after the ban by the Chinese government.
On Wednesday, after the company’s CEO Sanjay Mehrotra met Prime Minister Narendra Modi in the US, a formal announcement was made by Micron to start chip manufacturing in India.
Micron’s investment plan was approved in the cabinet committee meeting last week, even before Prime Minister Modi’s visit to America.
So that Micron can also get the benefit of Production Linked Incentive (PLI) for the manufacture of semiconductors.
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Micron is already making chips in China.
Micron is already doing chip manufacturing in China, but in the third week of May this year, the Chinese government has banned the purchase of Micron’s chip in China, calling Micron’s chip dangerous to the country’s security.
In such a situation, Micron would like to start its production in India as soon as possible so that the losses in China can be compensated.
There will be an investment of $ 2.75 billion in the factory.
By the year 2026, the semiconductor market in India will be worth $64 billion. From the year 2021 to the year 2026, the annual growth rate of the semiconductor market is estimated to be 19 percent.
That’s why Micron has said that it will try to complete the work of setting up its chip assembly and test factory in Gujarat in the year 2023 itself and the factory will start operating from next year.
There will be an investment of $2.75 billion in this assembly and test factory. Of this, $825 million will be invested by Micron.
The rest of the investment will be done jointly by the Government of India and Gujarat.
The company makes chips for smartphone phones and PCs.
Micron will also make a second round of investment next year, a few years after it begins chip manufacturing.
Micron mainly manufactures chips for smartphone phones and PCs. Chips are not manufactured in India as of now. In India, only the designing work of the chip has started.
