AAPL - Micron announces new India chip plant with investment up to nearly $2.8B

2023-06-22 07:53:42 ET

Micron Technology ( NASDAQ: MU ) announced on Thursday a new chip testing and assembly plant in India that could result in an investment in $2.75B in the world's most populous country.

In a statement, Micron ( MU ) said the facility would be in Gujarat and construction of the new DRAM and NAND plant is expected to start later this year and become operational in late 2024 as part of the first phase of the project. The second phase, which is expected to include construction of a facility similar in size to the first phase, is expected to happen "towards the second half of the decade."

Boise, Idaho-based Micron ( MU ) said it will invest up to $825M in the two phases and result in 5,000 new jobs for Micron and 15,000 jobs for India over the next several years.

Micron ( MU ) is slated to receive fiscal support for total project cost from the Indian central government for 50%, with incentives from the state of Gujarat for 20% of the total project cost, leaving the combined investment between the company and the country worth up to $2.75B.

"I am grateful to the Indian government and all of the officials involved that made this investment possible," said Micron President and CEO Sanjay Mehrotra in a statement. "Our new assembly and test location in India will enable Micron to expand our global manufacturing base and better serve our customers in India and around the world."

Micron ( MU ) shares slipped fractionally in pre-market trading on Thursday.

The news of a new semiconductor plant in India comes ahead of Prime Minister Narendra Modi's visit to the U.S.

Prime Minister Modi will be the guest at a White House state dinner, an event that includes Apple CEO ( AAPL ) Tim Cook and other dignitaries.

Several U.S. tech companies have recently expanded their operations in India amid increasingly tense Sino-American relations, including Apple and Cisco .

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