There is news that Micron will build a factory in India and the Indian government would bear 70% of the cost but 100% of the assets would be owned by Micron, so what is the catch in this deal?
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The deal is, Micron has of getting all that money from the Indian government and having a functioning and viable factory by any date in the future.
If a factory is actually built, it will be abandoned by Micron when it departs India, like all the other foreign companies before it.
India has a reputation for foreign companies leaving India and losing their investments. In the seven years from 2014 to 2021, 2,780 foreign companies left India, due the difficulties they encounter in India, including government corruption charging excessive penalties for violating some regulations, after government people raid the offices of foreign companies.
Micron is trying to save its ass, as a result of the Biden Administration's continued aggression against China. That means Micron is desperate to grab any straw that might save it.
Indian government apparently is enticing Micron to withdraw from China. The US government may be in on this, too. No holds barred.
Micron got KICKED out of China. Micron don’t know how to make goods which the Indians want. Surely Micron is not going to farm cow for the Indian market !
Sounds like a pretty common arrangement designed to entice a business to build in a certain place. It’s not like Micron can take the factory with them - so India benefits in taxes and employment even if Micron sells the factory.
Heavy contribution to Party fund.
India is being sold to grow the Party.
India have an established record of screwing foreign companies who invested in India so all we can say is good luck to Micron.
According to reports, the Indian government has approved Micron's project to set up a semiconductor test and packaging unit worth $2.7 billion in the country. The U.S. chipmaker is partnering with the government of India on the project — Micron will invest up to $825 million, while the central government will pay half the total cost and the state of Gujarat will offer incentives representing 20% of the cost. The catch in this deal could be that the Indian government sees this as an opportunity to bolster its domestic chip manufacturing capabilities and attract investments from global technology giants to establish a robust semiconductor ecosystem. The proposed chip packaging facility is likely to be equipped with cutting-edge infrastructure and cutting-edge assembly and testing technologies, which will contribute significantly to India's semiconductor value chain.
(1) Government approves $2.7-billion Micron's chip plant; unit expected to .... Government approves $2.7-billion Micron's chip plant; unit expected to create 5,000 jobs.
(2) Micron plans first chip factory in India | Supply Chain Dive. Micron plans first chip factory in India.
(3) Micron nears $1 billion investment for chip packaging factory in India .... Micron nears $1 billion investment for chip packaging factory in India: Report.
The deal is Micron gets a good deal because they don't have to bear all the cost of capital expenditure and the Indian government makes out by collecting tax dollars.
Obviously it’s another “free gift” from India to the US to please and catch its master’s attention to recognise India as one of US’s most faithful lap doggy in Asia beside Japan and South Korea.
How will Micron's entry into India affect the global semiconductor market?
I say good luck.
If the BBC can get into trouble for tax evasion in India, may God bless Micron which will have to repatriate profits back to hq eventually.
Let's see what happens in 5 years, but I doubt the Americans will get the square deal they are enjoying in china.
American memory chipmaker Micron will open a 2.75-billion-US-dollar semiconductor assembly and test facility in India. How do you look at US tech cooperation with India? Is it to contain China?
Dont worry. China waited 4–5 years before sanctioning Micron because China made sure Chinese firms are self-reliant & self-sufficient.
Micron has no impact on China, regardless where Micron goes.
To India? Good luck with Micron. India is not a easy place to go into.
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What factors contributed to Micron Technology's decision to invest in a chip facility in India?
I am not aware of any specific developments or decisions made by Micron Technology regarding investment in a chip facility in India.
However, in general, there are several factors that can influence a company's decision to invest in a particular country or region. These factors may include:
Market Potential: India is a large and growing market with a significant consumer base. Companies often invest in countries with strong market potential to tap into the local demand and gain a competitive advantage.
Cost-Effectiveness: India may offer cost advantages in terms of labor, infrastructure, or operational expenses compared to other regions. Lower costs can make the investment more attractive for companies looking to expand their manufacturing or production capabilities.
Government Support: Government policies and incentives play a crucial role in attracting foreign investments. If the Indian government provides favorable regulations, tax incentives, or subsidies for the semiconductor industry, it can encourage companies like Micron Technology to invest in the country.
Skilled Workforce: The availability of a skilled workforce is crucial for high-tech industries such as semiconductor manufacturing. If India has a well-educated and technically proficient talent pool, it can be an attractive factor for companies considering investment in chip facilities.
Infrastructure: Reliable infrastructure, including transportation, power supply, and communication networks, is essential for smooth operations. If India has developed or is improving its infrastructure, it can positively impact investment decisions.
Local Partnerships: Collaborating with local partners or establishing joint ventures can facilitate market entry and help navigate regulatory and cultural challenges. Strong local partnerships can be an influencing factor for companies looking to invest in India.
It's important to note that the specific factors considered by Micron Technology, or any other company, may vary based on their strategic objectives, market analysis, and internal considerations. To get the most accurate and up-to-date information about Micron Technology's decision regarding chip facility investment in India, it would be best to refer to official company announcements, news sources, or industry reports.
What are the reasons Micron is looking to expand to India?
Micron, a global leader in memory and storage solutions, has been actively exploring opportunities to expand its presence in India due to several key reasons:
Growing Market Potential: India is one of the world's fastest-growing economies with a significant population and increasing demand for advanced technology products. As the country embraces digital transformation across various sectors, there is a rising need for high-quality memory and storage solutions. Expanding to India allows Micron to tap into this expanding market and cater to the growing demand.
Favorable Government Policies: The Indian government has implemented several policies and initiatives to encourage foreign investment and boost the electronics manufacturing sector. Initiatives such as "Make in India" and the production-linked incentive (PLI) scheme offer incentives and support to companies willing to set up manufacturing facilities in the country. Micron can take advantage of these favorable policies to establish local manufacturing units and enhance its presence in India.
What do you think about the Indian government offering $1 billion to chip makers to set up factories locally?
You will need $4 Billion to set up a Foundry and R&D unit to build 45 nm chips for 5 years for set up and break even. In India that would be $ 6 Billion due to delays and lags.
6 Billion = Rs. 45000 Crore
Where is this money???
Not in the Budget??? How does GOI offer this money? From where?
Its a Gimmick. Seeing China is doing all this, so lets have Bullet Trains, Semiconductors etc.
Its always gimmicks
It may not seem that they would offer $1 billion in cash. Its unlikely they have such amount for semiconductors that they would offer at once. It may be that they would offer that amount as tax cuts or land or free electricity rather than giving $1 billion indian currency notes to a semiconductor manufacturing company. People in india often change their words and written agreements after start of a venture even if it happens after some chaos. Often, what they say is not what they mean or something they would do.