In an agreement, US chip giant Micron will invest $800 million in a semiconductor assembly and testing plant in India, which is expected to reach $2.75 billion after contributions from New Delhi.
A US official said the plant would help diversify supply chains of advanced semiconductors, as Biden leads a concerted effort to deny exports of top-end chips to China.
Construction for the first phase will begin in 2023, the U.S.-based chip manufacturer said. The first phase of the project, spanning over 500,000 square feet, will become operational by late 2024, Micron said.
The company will receive 50% fiscal support from the Indian government, along with incentives representing 20% of the project cost from the Gujarat government.
Micron expects the second phase of the project, which would include the construction of a facility similar in scale to the first phase, to start in the second half of the decade.
Micron nonetheless also recently announced a $600 million investment in a factory in China.
