Minister of State Electronics & IT: Four-five semiconductor firms exploring India packaging plant

In June, Micron announced that it will set up a $2.75 billion assembly and testing plant in Gujarat, in what was the first marquee name to officially commit investment in India under the country’s $10 billion chip incentive scheme.

US Chipmaker Micron Technology’s planned investment in India to set up a semiconductor packaging plant has spurred interest from other chipmaking companies in the sector, with some of them actively talking to the Centre about their potential investment plans, Minister of State for Electronics and IT Rajeev Chandrasekhar.

At least five packaging companies have reached out to us post the Micron announcement to explore a packaging plant in India. I can’t tell you the names right now, but companies that specialise in compound fabs and and at least one more memory maker like Micron have also showed interest in setting up a plant in the country, Chandrasekhar told this paper on the sidelines of the government’s flagship chip event SemiconIndia 2023.

In June, Micron announced that it will set up a $2.75 billion assembly and testing plant in Gujarat, in what was the first marquee name to officially commit investment in India under the country’s $10 billion chip incentive scheme.

The Indian Express had earlier reported that South Korean memory major SK Hynix was also considering India’s scheme to set up a packaging plant in the country, similar to that of Micron.Finalising these deals could be a major win for the country, especially after the setback its chip plans faced following the breakup of the Vedanta Foxconn joint venture.

“We are envisaging that if there is a big Indian or big foreign company that wants to do chip design in India, we should allow the future design scheme to support them too.