China-banned US chipmaker Micron to invest in India

United States (US) chip-making giant Micron is planning an $800 million investment to establish a chip factory in India, a US official said Thursday.

Micron was recently banned by China, back in May.

The Chinese government prohibited the purchase and importation of Micron chips, in a move that was described by US Commerce Secretary Gina Raimondo as “economic coercion”.

According to Agence France-Press (AFP), the US is leading efforts to prevent China from dominating high-end technology markets and find ways diversify the supply chain.

The factory will help “build a semiconductor ecosystem that promotes supply chain diversification,” the official told reporters.

The statement came during a visit by Indian Prime Minister Narendra Modi to the US.

US President Joe Biden (R) and First Lady Jill Biden (L) greet India’s Prime Minister Narendra Modi at the White House in Washington, DC on June 21, 2023 – Source: Mandel NGAN / AFP

The assembly and testing factory will total $2.7 billion, after Indian investment, AFP reported.

China announced the ban on Micron memory chips on May 21, in an apparent response to the US’ effective bans and sanctions on China.

China’s cyberspace regulator said that Micron, the biggest US memory chip maker, had failed its network security review.

The ban blocks operators of key infrastructure from buying from the company, according to Reuters.

The US effectively prohibited the exportation of advanced US microchip technologies to China for the better part of a year now. But US and Korean officials are looking to make exceptions for South Korean companies operating in China.