India US Bolster Partnership Drive Innovation in Semiconductors 5G 6G AI And More
Prime Minister Narendra Modi in his visit to the USA visited the White House to meet the US president Joseph Biden and the First Lady Dr. Jill Biden.
After the conversations, the leaders highlighted the long-standing friendship and growing cooperation between the two countries, which spans areas like trade and investment, defence and security, energy, and more.
They hailed the inauguration of the Initiative on Critical and Emerging Technology (iCET) in January 2023 as a major milestone in U.S.-India relations.
Micron Technology to invest $800 million in semiconductor facility in India
Micron Technology, a leading global semiconductor company, plans to build a new assembly and test facility in Gujarat, India. The facility will manufacture DRAM and NAND products to meet the growing demand from both domestic and international markets.
Micron’s new facility, the first of its kind in India, will gradually ramp up capacity in line with global demand trends. The phased construction is scheduled to begin in 2023, with Phase 1 becoming operational in late 2024. Phase 2, a facility of similar scale, is planned for the second half of the decade.
The project will receive significant support from the Indian central government and the state of Gujarat. Micron’s investment of up to $825 million across two phases will be supplemented by 50% fiscal support from the central government and incentives representing 20% of the total project cost from the state.
This collaboration is expected to generate up to 5,000 new direct jobs at Micron and an additional 15,000 jobs in the community. The total investment by Micron and two government entities will be up to $2.75 billion.
Strategic Importance and Sustainability
Micron’s choice of Gujarat is driven by the region’s manufacturing infrastructure, business environment, and well-established talent pipeline. The new facility will focus on transforming wafers into integrated circuit packages, memory modules, and solid-state drives.
It will be built and operated in accordance with Micron’s sustainability goals, targeting Leadership in Energy and Environmental Design (LEED) Gold standards and utilizing advanced water-saving technologies for Zero Liquid Discharge.
Meeting Long-Term Demand
Micron’s plans align with the expected long-term demand for memory and storage solutions worldwide. The establishment of the facility in Gujarat will complement the company’s global assembly and test network, enabling it to cater to diverse markets efficiently.
Joint Statement from the United States and India
In a meeting between President Joseph R. Biden, Jr. and Prime Minister Narendra Modi, the United States and India affirmed their vision of a strong partnership in the 21st century. Several areas of cooperation were highlighted:
1) Strengthening Semiconductor Supply Chains: Applied Materials will establish a Semiconductor Centre for Commercialization and Innovation in India, promoting diversification of semiconductor supply chains. Lam Research will train 60,000 Indian engineers in semiconductor education. Readiness assessments by the U.S. Semiconductor Industry Association and India Electronics Semiconductor Association will facilitate strategic development in the semiconductor sector.
2) Advanced Telecommunications and 5G/6G Technologies: Joint Task Forces on advanced telecommunications will focus on Open RAN and research in 5G/6G technologies. Public-private cooperation will be led by India’s Bharat 6G Alliance and the U.S. Next G Alliance. Field trials, rollouts, and scaled deployments of Open RAN will take place in both countries with the support of the U.S. International Development Finance Corporation (DFC). A “Trusted Network/Trusted Sources” bilateral framework will be established.
3) Quantum Coordination and AI Collaboration: A joint Indo-U.S. Quantum Coordination Mechanism will enhance collaboration between industry, academia, and government in quantum research. Cooperation in quantum information science, technology, and AI will be fostered. Funding for joint projects in applied research areas, such as semiconductors, communication, cybersecurity, and green technologies, will be provided.
4) Scientific Infrastructure and Biotechnology: Cooperation will extend to scientific infrastructure, including contributions from India’s Department of Atomic Energy to the U.S. Department of Energy’s Fermi National Laboratory. The construction of a Laser Interferometer Gravitational-Wave Observatory (LIGO) in India will commence. Partnerships in advanced biotechnology and biomanufacturing, as well as biosafety and biosecurity innovation, will be enhanced.
5) Talent, Innovation, and Inclusive Growth: The U.S.-India Commercial Dialogue will focus on expanding cooperation in talent, innovation, and inclusive growth. Efforts to upskill employees, promote STEM learning, and support MSMEs will be undertaken. The “Innovation Handshake” initiative will connect start-up ecosystems and address regulatory hurdles to promote further innovation and job growth.
6) Fiber Optics Investments: Sterlite Technologies Limited has invested $100 million in an optical fiber cable manufacturing unit in South Carolina, facilitating significant annual exports of optical fiber from India.
These collaborative efforts demonstrate the commitment of both nations to fostering technological advancements, economic growth, and inclusive partnerships.
Commenting on the announcement, Micron President and CEO, Sanjay Mehrotra, said:
We’re thrilled about India’s efforts to grow its semiconductor ecosystem. Thanks to the Indian government and officials for making this investment possible. Our new assembly and test site in India will help us expand our global manufacturing and better serve customers worldwide.
Prabu Raja, President of the Semiconductor Products Group at Applied Materials, said:
Applied is excited to build upon our 20 years of success in India by creating a facility where the country’s top engineers, suppliers and researchers can work side-by-side to develop new innovations. We envision Applied’s strong base of engineering talent collaborating more deeply with domestic and global companies operating in India to strengthen the foundational equipment supply chain serving the global semiconductor manufacturing industry.