Micron to build $2.7bn chip packaging and testing plant in India

India has allowed Micron Technology to build a factory in the country to test and package chips. The construction plan has been approved by the cabinet.

Here's What We Know

The approval to build the plant in the country comes amid an upcoming visit to the US by Indian Prime Minister Narendra Modi. The cost of the project will be $2.7bn, but India will provide a subsidy of $1.34bn.

The unprecedentedly large amount of subsidies was the reason why the project had to be approved by the cabinet. The US company Micron has not commented on the information.

It is expected that the official announcement about construction of Micron plant in India will be made after meeting of Narendra Modi with US president Joe Biden. The Indian prime minister's visit to Washington is scheduled for June 22.

Source: Reuters