US semiconductor company Micron Technology Inc. has recently announced its plans to invest up to $825 million in a new chip assembly and test facility in India. This will mark Micron’s first factory in the country, with the facility being established in Gujarat. The total investment in the plant, with support from the central and state governments, is expected to reach $2.75 billion, with 50% coming from the central government and 20% from the government of Gujarat.
Micron’s investment is seen as a transformative move for India’s semiconductor industry, generating a significant number of high-tech and construction jobs. The Minister of IT and Telecom, Ashwini Vaishnaw, emphasized the impact of Micron’s entry into India’s semiconductor landscape and showcased the semiconductor technology that the company will bring to the country. Micron Technology is currently the world’s fifth-largest semiconductor manufacturer.
The Indian government anticipates that Micron Technology will begin manufacturing the first domestically produced chips in the next six quarters, with the plant expected to be operational by late 2024. The new facility in Gujarat will serve Micron’s customers worldwide, expanding the company’s global manufacturing base and improving its ability to cater to Indian and international customers.
Micron’s announcement followed a meeting between Prime Minister Narendra Modi and Micron CEO Sanjay Mehrotra in the United States, where Mehrotra expressed optimism about the opportunities in India. The phased construction of the assembly and test facility is set to begin in 2023, with Phase 1 encompassing 500,000 square feet of cleanroom space and becoming operational by late 2024. The project is expected to create around 5,000 direct jobs and 15,000 community jobs in the coming years.
Micron highlighted the government’s support in funding the project and facilitating access to essential semiconductor infrastructure and resources for driving innovation and talent development.
