MU - Micron may soon announce a billion-dollar investment in India

2023-06-16 12:04:38 ET

Micron Technology Inc ( NASDAQ: MU ) is in focus this morning after a report said it was close to making a billion-dollar investment in India.

Here’s what we know so far

Anonymous sources told Bloomberg today that the Boise-headquartered firm could soon announce plans of spending at least $1.0 billion to set up a chip packaging facility in India.

Narendra Modi – the Prime Minister of India is scheduled for a visit to the United States next week. That’s when the official announcement may be made.

Nonetheless, the talks are ongoing and a prospect of no such agreement also remains on the table, the sourced confirmed. The stock market news arrives months after Micron Technology Inc reported its largest quarterly loss on record.

At writing, “MU” is still up 30% for the year.

China banned Micron chips last month

Interestingly, the Nasdaq-listed firm may even decide in favour of spending as much as $2.0 billion in India, as per people familiar with the matter.

Investing in the third largest economy in Asia offers means for Micron Technology Inc to diversify out of China and avoid getting caught in the crosshairs of tensions it has ongoing with the U.S.

In May, the Cyberspace Administration of China banned certain companies from using Micron chips, citing a significant security threat as Invezz reported here.

Still, the U.S. chipmaker pledged another $600 million to its Chinese plant on Friday. Wall Street currently has a consensus “overweight” rating on the semiconductor stock.

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