US Micron's factory in India is about to enter a critical delivery period! The first phase of Micron's chip factory located in Sanand, Gujarat, India, has entered the critical cleanroom verification stage. A cleanroom is a highly controlled environment for chip processing that minimizes airborne particulates that could damage sensitive process products. The first phase of the plant is planned to have a cleanroom area of 500,000 square feet, covering all facilities for chip assembly, testing, marking, and packaging.

In 2023, the Indian government signed an investment agreement with Micron to jointly build two phases of the project, with an investment of up to $2.75 billion, of which Micron will contribute $825 million and the Indian government $1.9 billion. The original plan was to put the first phase into operation by the end of 2024, and the second phase is scheduled to start in the second half of 2025.

However, due to various factors, the delivery time for the first phase of the factory is now expected to be before December 2025. Due to repeated delays in delivery by India, Micron cannot accurately determine the timeline.

Currently, the Micron chip factory can only say it's inconvenient to get angry, as the construction has already been delayed by a full year. It's still uncertain whether it can be completed before the end of December 2025. Americans are also quite frustrated with Indian companies. They knew Indians were unreliable, but they didn't expect them to be so unreliable. A simple factory is being built so slowly, which is simply frustrating.

Micron's factory can only reluctantly accept reality, letting India gradually build it step by step, since Micron has only contributed nearly a third of the cost, and the rest is borne by India. However, taking advantage of India is not easy at all. Micron will definitely have to pay a huge price to take back every penny earned from its investment in India.

India has always had the tradition of earning money in India and spending it in India, without allowing any money to be taken out. Although Micron's factory is an American company, whether it can withdraw completely is hard to say. Like Samsung Group, which was fined $600 million by the Indian government, directly leaving Samsung confused. Samsung Group is a world-class enterprise, yet it was forced to be helpless by India!

This is really hard to explain. Now, India is in a phase of plundering foreign investments, bringing foreign capital in first and then closing the door to beat them, deciding how to deal with them as they please. This is the most frustrating fact. No matter what, the reality in India is just embarrassing. No matter what, Micron's factory will eventually open, and there's no rush. Let's see if Micron's factory can grow better.

Micron's investment in India is destined to face difficulties; it all depends on how Micron operates.

Original article: https://www.toutiao.com/article/1836325092346122/

Statement: This article represents the personal views of the author.