On June 21, the cabinet had also sanctioned production-linked incentives worth 110 billion rupees ($1.34 billion) for Micron plant, which is slated to be constructed in Gujarat, according to a report of Reuters.
"The prime minister invited Micron Technology to boost semiconductor manufacturing in India," an official statement issued by the external affairs ministry read.
PM Modi, who is visiting the US at the invitation of President Biden and First Lady Jill Biden., has also invited Applied Materials to India for development of process technology and advanced packaging capabilities.
Modi during his meeting with President and CEO of Applied Materials Gary E Dickerson discussed the potential of the company's collaboration with academic institutions in India to create a skilled workforce.
Prime Minister Modi also met General Electric CEO of H Lawrence Culp and invited the company to play a greater role in the aviation and renewable energy sector in India. "Prime minister appreciated GE for its long-term commitment of manufacturing in India. The prime minister and Mr. Culp Jr discussed GE's greater technology collaboration to promote manufacturing in India," it said. Global companies are exploring India as a viable investment destination for semiconductors amid heightened focus by the Indian government on making the country a hub for the manufacturing of electronics and semiconductors.
In 2021, the Indian semiconductor market reached a valuation of USD 27.2 billion, and it is projected to experience a robust compound annual growth rate (CAGR) of approximately 19 percent, reaching USD 64 billion by 2026. However, despite this growth, India has yet to establish its own semiconductor manufacturing capabilities.
The establishment of semiconductor units, also known as fabs, is a highly specialized, intricate, and costly undertaking. Fabs require sophisticated technology, involve significant risks, and demand substantial time and financial investments before yielding returns.
With agency inputs
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