Micron Moves Ahead with Phase 2 of Sanand Chip Plant Despite Delays
American memory chipmaker Micron Technology is proceeding with the second phase of its $2.75 billion semiconductor plant in Sanand, Gujarat, even as construction delays plague the first phase. The initial phase, handled by Tata Projects, was originally expected to be operational by late 2024 but has been pushed to late 2025. With 60% of the civil work completed but cleanroom construction yet to begin, Micron is now seeking a new contractor, with L&T and KEC International among the bidders. Despite setbacks, company officials remain confident that the plant will roll out its first chip in 2025, aided by significant government incentives covering up to 70% of project costs.
For non-Indian companies, the developments at Micron’s Sanand facility underscore both the opportunities and challenges of India’s growing semiconductor sector. The Indian government’s push for domestic chip manufacturing, backed by substantial subsidies, presents a compelling case for global players looking to diversify supply chains. However, the delays highlight potential hurdles in large-scale infrastructure execution, making it essential for foreign investors to assess risks and partnerships carefully before entering the Indian market.
Editor’s Note: Micron Technology is moving ahead with the second phase of its $2.75 billion semiconductor plant in Sanand, Gujarat, despite delays in the first phase, which has been pushed to late 2025. With 60% of civil work completed, the company is seeking a new contractor for cleanroom construction. India’s semiconductor sector is growing rapidly, offering significant opportunities for Taiwanese companies to collaborate, especially with the government’s strong push for domestic chip manufacturing.
Lam Research to Invest $1.2 Billion in Karnataka to Boost India’s Chip Sector
U.S.-based semiconductor equipment maker Lam Research has announced a $1.2 billion investment in India’s Karnataka state over the next few years, marking a significant boost to the country’s growing semiconductor ecosystem. The company signed a memorandum of understanding (MoU) with the Karnataka Industrial Area Development Board (KIADB) during the ‘Invest Karnataka’ event, reinforcing India’s ambitions to establish itself as a key player in global chip manufacturing. This investment aligns with Prime Minister Narendra Modi’s $10 billion incentive package to attract semiconductor firms, as India aims to build a $63 billion semiconductor market by 2026.
For non-Indian companies, Lam Research’s move signals growing confidence in India’s semiconductor expansion efforts and presents opportunities for collaboration, supply chain partnerships, and investment in India’s emerging chip sector. As global players seek alternatives to traditional semiconductor hubs like Taiwan, India’s policy-driven incentives and expanding infrastructure make it an increasingly attractive destination for chip-related industries. However, foreign investors should carefully evaluate execution challenges and regulatory dynamics before committing to large-scale projects.
Editor’s Note: Lam Research will invest $1.2 billion in Karnataka to support India’s growing semiconductor ecosystem, aligning with the government’s $10 billion incentive package. This investment highlights India’s ambition to become a key global player in chip manufacturing, targeting a $63 billion market by 2026. The move offers opportunities for global companies to collaborate in India’s expanding semiconductor sector, though careful evaluation of execution and regulatory challenges is needed.
India Unlikely to Lift Ban on Chinese Investments Amid Trade Imbalance Concerns
India is not expected to ease restrictions on Chinese investments in the near future, according to Chief Economic Adviser V. Anantha Nageswaran. Speaking at an event in Mumbai, he emphasized the need for both nations to acknowledge their mutual dependence before policy changes can be considered. India imposed tighter scrutiny on Chinese investments in 2020 following deadly border clashes, which significantly strained diplomatic and economic ties. Meanwhile, India has initiated talks with China to address its widening trade deficit, which currently stands between $93 billion and $95 billion.
For non-Indian companies, India’s stance on Chinese investments highlights the broader geopolitical risks affecting foreign direct investment (FDI) policies. While global firms looking to expand in India may benefit from reduced competition from Chinese players, they must also navigate shifting trade dynamics and regulatory barriers. This ongoing tension underscores the need for businesses to closely monitor India-China relations and diversify their supply chain strategies accordingly.
Editor’s Note: India is unlikely to ease restrictions on Chinese investments due to ongoing concerns over the trade imbalance and strained diplomatic ties since 2020. This stance presents both opportunities and risks for foreign companies, as they may face reduced competition from Chinese players but must navigate shifting trade dynamics and regulatory challenges.
IndiaAI Mission to Fund Indigenous AI Models, Rejects Fine-Tuning of Existing LLMs
The Indian government has clarified that proposals under the ₹1,500 crore ($180 million) IndiaAI Mission must focus on developing original foundational AI models rather than fine-tuning existing ones. During a Q&A session on February 11, officials emphasized that merely building on open-source models like LLaMA 3 or DeepSeek would not qualify unless significant innovation is demonstrated. Preference will be given to models supporting multiple Indian languages, and distillation-based approaches will be evaluated case by case. The initiative, announced by IT Minister Ashwini Vaishnaw, aims to create multiple generative AI models within 10 months, with funding provided through direct grants or compute credits.
For non-Indian companies, this move signals India’s ambition to establish a homegrown AI ecosystem, reducing dependence on foreign technology. It also presents opportunities for global AI firms to collaborate on research, infrastructure, and cloud computing services tailored to India’s AI ambitions. However, businesses looking to participate must align with India’s emphasis on originality and multilingual AI development rather than repurposing existing models.
Editor’s Note: The Indian government’s ₹1,500 crore IndiaAI Mission will fund the development of original AI models, prioritizing multilingual capabilities and innovation over fine-tuning existing ones. The initiative aims to create multiple generative AI models within 10 months, with funding provided through grants or compute credits. This presents opportunities for global AI firms to collaborate, but they must align with India’s focus on developing homegrown, original AI technology.
Tamil Nadu Officials Step In to Resolve Samsung Factory Labor Dispute
State officials in Tamil Nadu are set to visit Samsung’s factory in Sriperumbudur to mediate a labor dispute that has led to a nine-day sit-in protest by 500 workers. The protest was triggered by the suspension of three employees, with the workers’ union demanding their reinstatement before returning to work. Tamil Nadu’s labor minister, C.V. Ganesan, expressed confidence that normal operations would resume within two to three days. While Samsung has called the strike illegal, it has maintained that production remains unaffected, reportedly by hiring contract workers—an issue that state authorities are also investigating. The factory, employing 1,800 workers, produces appliances like refrigerators and washing machines and contributed significantly to Samsung’s $12 billion Indian sales in 2022-23.
For non-Indian companies, the ongoing labor disputes at Samsung’s Tamil Nadu plant highlight the complexities of workforce management in India’s manufacturing sector. While India remains a key destination for global electronics production, frequent labor unrest underscores the importance of strong labor policies, union negotiations, and compliance with local employment laws. Businesses looking to expand in India should closely monitor labor dynamics to mitigate operational disruptions.
Editor’s Note: Tamil Nadu officials are stepping in to resolve a labor dispute at Samsung’s Sriperumbudur factory, where 500 workers have been on strike over the suspension of three employees. The incident highlights the complexities of workforce management in India’s manufacturing sector, emphasizing the need for strong labor policies and union negotiations for businesses expanding in the country.
GenAI to Boost Retail Productivity in India by Up to 37%, Says EY Report
A growing number of Indian businesses are adopting Generative AI (GenAI) to drive efficiency, improve customer experiences, and streamline operations, according to EY India’s latest report, The AIdea of India: 2025. The study predicts that GenAI will enhance retail productivity by 35-37% over the next five years, transforming areas such as pricing, promotions, and supply chain management. Currently, 48% of surveyed organizations have initiated proof-of-concept (PoC) projects, while 32% have either allocated budgets or are preparing to invest in GenAI. Experts highlight that store operations, sales functions, and manufacturing will see major improvements, with potential efficiency gains of up to 45%.
For non-Indian companies, India’s rapid GenAI adoption presents opportunities for collaboration in AI-driven retail, supply chain optimization, and digital transformation. Global brands such as H&M, Coca-Cola, and Amazon are already leveraging GenAI for sustainability, logistics, and cashierless checkout, reflecting a broader industry shift. As India advances in AI-enabled retail innovation, international companies can explore partnerships, investment opportunities, and market expansion while addressing challenges like workforce upskilling and balancing automation with human-centric experiences.
Editor’s Note: According to an EY report, Generative AI (GenAI) is expected to boost retail productivity in India by 35-37% over the next five years, transforming areas like pricing, promotions, and supply chain management. Nearly half of surveyed organizations are already testing GenAI, with a significant portion planning future investments. This presents opportunities for global companies to collaborate on AI-driven retail and supply chain solutions, while addressing challenges such as workforce upskilling and balancing automation with human interactions.