The Indian Prime Minister Narendra Modi has reportedly extended an invitation to Micron Technology, a prominent American chip maker, to collaborate and enhance semiconductor manufacturing in India, as the country offers competitive advantages across various aspects of the product's supply chain.

Additionally, India has urged Applied Materials to consider establishing a presence in the country to focus on the development of process technology and advanced packaging capabilities.

During a meeting between Prime Minister Modi and Applied Materials' President and CEO, Gary E. Dickerson, the potential of collaborative efforts with Indian academic institutions to cultivate a skilled workforce was discussed, reportedly.

Furthermore, in a separate meeting with General Electric's CEO, H. Lawrence Culp Jr., PM Modi expressed appreciation for GE's continued commitment to manufacturing in India. They discussed the possibility of increased technology collaboration to promote manufacturing, particularly in the aviation and renewable energy sectors.

Notably, India is promoting semiconductor development and has launched a production-linked incentive (PLI) scheme to encourage investment in this field. As a result, global companies are considering India as an appealing destination for electronics and semiconductor investments.

Although the Indian semiconductor market reached a valuation of USD 27.2 billion in 2021 and is projected to grow at a healthy CAGR of nearly 19% to reach USD 64 billion by 2026, none of the chips are currently manufactured within the country. Establishing semiconductor units, also known as fabs, is a highly specialized, complex, and costly endeavor. Fabs require sophisticated technology, involve high risks, and demand long periods for both development and financial returns.

Prime Minister Modi's visit to the United States follows his participation in a momentous event at the UN Headquarters in New York, where he led the commemoration of the 9th International Day of Yoga. The Indian PM’s US visit was extended by the invitation of POTUS Joe Biden and First Lady Jill Biden, as part of efforts to strengthen bilateral relations.

Source Credit: https://www.moneycontrol.com/news/india/pm-modi-invites-micron-to-boost-semiconductor-manufacturing-in-india-10836901.html