Page 26 - The Indian EYE 063023

BUSINESS EYE JUNE 30, 2023 | The Indian Eye 26

In meeting with Modi,

Micron CEO promises huge

investment in India’s chip sector

The Union Cabinet has cleared a Rs 22,500 crore (USD 2.7 billion) investment

by American chipmaker Micron for setting up a semiconductor unit in the country

OUR BUREAU
Washington, DC

anjay Mehrotra, President-CEO
of Micron Technology, global
Sleaders in semiconductors on
Wednesday met Prime Minister Nar-
endra Modi and said that the meeting
with him was “excellent.”
“I had an excellent meeting with
PM Modi. I am very impressed with
the vision that he has for India and
the advances that India is making.
We discussed a wide range of top-
ics and we really look forward to
greater opportunities in India,” said
Mehrotra. Recently, India and the
US have signed a Memorandum of
Understanding (MoU) on establish-
ing the Semiconductor Supply chain
during India - USA 5th Commercial
Dialogue 2023, which can help India
realize its long-nurtured dream of be-
coming a hub for electronic goods.
The MoU seeks to establish a Prime Minister Narendra Modi meets Sanjay Mehrotra, President-CEO of Micron Technology at White House in Washington DC on Wednesday (ANI)
collaborative mechanism between
the two governments on semiconduc- cleared a Rs 22,500 crore (USD 2.7 nodes - generally defined as chips that er, ‘wide-body’ aircraft, expects that
tor supply chain resiliency and diver- billion) investment by American are 40 nanometres (nm) or above India’s airlines will also buy more of
sification in view of the US’s CHIPS chipmaker Micron for setting up a and find application in sectors such as such aircraft as international travel
and Science Act and India’s Semicon- semiconductor unit in the country. the automotive industry - before try- picks up too.
ductor Mission. Micron is amongst the top semi- ing to attempt an entry into the more Biden administration is set to
The US and China are giants in conductor companies in the world advanced nodes (smaller than 40nm), approve a potential multi-million
chip manufacturing. So, this pact with and plans to set up a semiconductor which are far more strategic, but re- government-to-government deal, to
the US to strengthen cooperation in testing and packaging unit - one of quire exceptional manufacturing ca- permit General Electric (GE) to
the semiconductor sector to facilitate the critical jobs in the journey of chip pabilities and project execution skills. manufacture fighter jet engines in In-
commercial opportunities and the manufacturing - within the country. PM Modi also met H Lawrence dia during PM Modi’s US visit.
development of innovation ecosys- Recently, China has also banned Culp Jr, Chairman and CEO, of Biden administration is set to
tems is likely to help India immensely. Micron which makes semiconductor General Electic and CEO of General approve a potential multi-million
It can help India align into a chips and also works in Artificial In- Electic Aerospace. government-to-government deal, to
more central role in the global elec- telligence technology. This was Chi- GE Aerospace has big plans to permit General Electric (GE) to man-
tronics supply chain. na’s retaliation against US actions. ramp up its Indian operations. The ufacture fighter jet engines in India
The crunch in semiconductors Increasing competition for dom- company is seeking to consolidate during PM Modi’s June 21-24 US visit.
supply began during Covid-19 and inance between US and China will its position as the engine supplier of India is evaluating proposals
went on to intensify in 2021. A Gold- have spillover effects for countries choice as India’s commercial airliners from American and French firms for
man Sachs report suggested that at like India. place record orders for hundreds of its Made in India aircraft including
least 169 industries had been impact- From a domestic perspective, planes with demand for air travel soar- the LCA Mark 2 and the Advanced
ed by the global chip supply shortage this could also prompt a potential ing in the subcontinent post-Covid. Medium Combat Aircraft. The evalu-
in 2021. The crunch has eased now realignment of India’s current poli- GE Aerospace, whose Indian ation of the proposals from both sides
but some disruptions in the supply cy approach on chip manufacturing: engineering team already plays a is going on. The key factors for these
chain still exist. which is currently focused, almost en- central role in developing its engines, proposals would be the extent of the
Notably, the Union Cabinet tirely, on the manufacture of mature including those that go on the larg- transfer of technology and pricing.

www.TheIndianEYE.com