NEW DELHI: India’s cabinet on June 21 has approved U.S. chipmaker Micron Technology’s $2.7 billion plan for a new semiconductor testing and packaging unit, a senior government source told Reuters.
The Government agreed production-linked incentives worth 110 billion rupees ($1.34 billion) for the plant, which is set to be built in Gujarat, the Indian official added. He declined to be identified ahead of a planned announcement during Modi’s visit.
The Cabinet approval was required due to the size of the incentive package, the source added. Micron’s plan had been previously reported but not the approval by cabinet.
Spokespeople for Micron and the Indian government, including its technology ministry, did not respond to requests for comment.
Micron Technology’s plans come as the White House presses U.S. chip companies to invest in India with talks ongoing about possible further investments, U.S. administration officials told sources.
