Micron Technology (NASDAQ:MU) announced plans to build a new DRAM and NAND chip testing and assembly plant in India, representing an investment of up to $2.75 billion in the densely populated nation. Construction of the Gujarat-based facility is set to begin later this year, with operations starting in late 2024. The chipmaker will invest up to $825 million over two phases, creating 5,000 jobs at Micron and 15,000 jobs across India over the next few years.
Pick the best stocks and maximize your portfolio:
- Discover top-rated stocks from highly ranked analysts with Analyst Top Stocks!
- Easily identify outperforming stocks and invest smarter with Top Smart Score Stocks
The Indian central government will provide financial support covering 50% of the total project cost, and incentives from the state of Gujarat will account for 20% of the total project cost. Micron’s CEO, Sanjay Mehrotra, expressed gratitude towards the Indian government for making the investment feasible and pointed out that the new location would enhance Micron’s global manufacturing base and customer service. The announcement comes ahead of Indian Prime Minister Narendra Modi’s U.S. visit and amidst a trend of U.S. tech companies expanding their operations in India due to growing Sino-American tensions.
Turning to Wall Street, analysts have a Moderate Buy consensus rating on MU stock based on 18 Buys, four Holds, and two Sells assigned in the past three months, as indicated by the graphic above. Nevertheless, the average price target of $73.05 per share implies 10.3% upside potential.
