What's Going On With Micron Technology Stock Today

Micron Technology, Inc MU shares are trading higher today following reports of a semiconductor plant set up in India and the chipmaker's plans to stop offering cheaper chips from May.

The Indian government is close to approving a proposal by Micron to set up an assembly, testing, marking, and packaging (ATMP) facility in the country, involving an investment of about $1 billion. 

Micron will use the facility to process some of its wafers manufactured globally, Business Standard reports.

India launched an ₹760 billion ($92 billion) semiconductor and display fabs incentive scheme in December 2021.

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Despite the Indian government's focus on attracting investments in wafer fabs, experts believe starting with ATMP and OSAT business is more feasible, Digitimes Asia reports.

Compared with wafer fab, which may cost over $3 billion to build, it requires less than $1 billion to set up an ATMP and OSAT facility, besides a shorter timeframe to recover the capital expenditure.

Besides Micron's rumored ATMP facility, several companies had forayed into the ATMP and OSAT business in India, including Tata, Sahasra, and Visicon, while four companies, including SPEL Semiconductor, HCL, Syrma Technology, and Valenkani Electronics, are still waiting for approval from India's central government.

Separate reports suggest Micron proposes to no longer provide lower chip prices starting in May. Micron will no longer accept DRAM and NAND flash prices at lower levels.

Price Action: MU shares traded higher by 2.94% at $59.85 on the last check Wednesday.