Micron Technology, the US-based memory chip giant, is reportedly planning to invest at least $1 billion in setting up a semiconductor packaging plant in India, as it diversifies its global footprint.

A Bloomberg report on Friday said an announcement to this effect could be made when Prime Minister Narendra Modi visits the US next week and that the amount of money committed could go to as high as $ 2 billion.

However, at the same time, the details of the final investment could also change as discussions are in progress, even as there is no certainty that an agreement will be finalised.

For Modi, the deal will mark a win for his “Make in India” campaign, whereas it is expected to offer Washington an opportunity to boost key supply chains outside of China. Modi will be visiting the US from June 21-25.

Micron on Friday said it remained committed to China despite being targeted by China’s cyberspace regulator, which last month said the firm, the United States’ biggest memory chipmaker, had failed a network security review.

The $31-billion giant said it would invest 4.3 billion yuan ($603 million) over the next few years in its chip packaging facility there.

“This investment projects demonstrates Micron’s unwavering commitment to its China business and team,” CEO Sanjay Mehrotra reportedly said

Huge potential

India has almost everything needed to have a successful semiconductor industry but it still needs to work to reestablish credibility, the head of the world’s top advocacy group representing the semiconductor industry has said.

From near-zero levels just a year-and-a-half ago, India is now well on its way to having 100 semiconductor design start-ups by 2024.

The Rs 76,000-crore incentive scheme for chip-making, the large talent pool and the skilling programme is playing to the country’s strength and mark India’s rise as a semiconductor nation.

“It’s now or never (for India in the semiconductor industry),” Ajit Manocha, president and CEO of Semiconductor Equipment and Materials International or SEMI, said.

“Because it takes years to come to the speed and this is a time to do it. Also if we don’t do it now, I think we’ll lose credibility forever,” he said

Based out of Silicon Valley, SEMI has more than 2,500 member companies.

With inputs from PTI