The Union Cabinet has approved Micron Technology’s plan of building a $2.7 billion semiconductor testing and packaging unit as Prime Minister Narendra Modi arrived in the US on a state visit.
The government agreed on production-linked incentives worth Rs 110 billion ($1.34 billion) for the plant, which is going to be based out of Sanand, Gujarat. The size of the incentive package is reported to be the prime reason behind the cabinet’s approval. The Assemble Testing Marking and Packaging unit will test and pack semiconductor chips, instead of manufacturing them. The semiconductors could be procured by the clients or the other companies have the option of sending theirs for testing before shipping. It was reported later this month that three companies including a Foxconn joint venture, that bid for Indian semiconductor incentives were struggling due to a lack of technology partner.
