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India’s provide production-linked incentives (PLI) for companies to set up semiconductor units is encouraging for American companies, a US official said.
The investment Micron Technology, a semiconductor major headquartered in Idaho, will make in Sanand, Gujarat, demonstrates the rising interest of American companies in the country, said India-born Arun Venkataraman, US Assistant Secretary for Commerce, in Mumbai.
Venkataraman called for an ecosystem that is conducive and has clear regulation to enable startups in both countries to benefit and collaborate with each other.
Venkataraman, who was in India leading a business delegation promoting clean energy and technology companies, said President Joe Biden has asked his team to strengthen the US-India partnership. "Both American and Indian companies can collaborate in areas such as the Panchamrit climate action and the Jal Jeevan mission, and support the initiatives of the Indian government. These companies are here to help meet the objectives of these missions," he said.
Venkataraman said India’s PLI schemes are a step in the right direction. In June last year, Micron Technology announced plans to build a new assembly and test facility in Sanand for an initial investment of $825 million over the two phases of the project.
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As per the Indian government's Modified Assembly, Testing, Marking, and Packaging Scheme, Micron will receive 50 percent fiscal support for the total project cost from the Indian central government, and incentives representing 20 percent of the total project cost from Gujarat. The combined investment by Micron and the two government entities over both phases will be up to $2.75 billion. Apart from Micron, the Tata group has also announced investments in setting up semiconductor units in India.
Once Micron’s plant is ready, it will transform Sanand, the industrial belt synonymous with the automotive industry, into a high-tech semiconductor hub. It is the first mega project cleared under the Central government’s $10 billion incentive plan to woo global chipmakers, Business Standard reported earlier.
