NEW DELHI: The government has reportedly approved US chipmaker Micron Technology’s $2.7 billion plan for a new semiconductor testing and packaging unit. According to the report, the Cabinet has agreed to production-linked incentives worth $1.34 billion for the plant in Gujarat. The company will set up an assembly testing marking and packaging (OSAT) plant in the city of Sanand.
This will be the first approval of an OSAT unit by the government, which has unveiled a `76,000 crore package to begin semiconductor manufacturing in the country. ATMP/OSAT units are an important link in the semiconductor manufacturing chain as they perform the crucial tasks of testing and packaging silicon chips. With this approval, Micron could procure and package chips for clients at the plant, or other companies could send their chips for testing before shipping.
On May 31, 2023, the government reopened the window for applicants, both new and existing, to re-apply for setting up semiconductor and display fabrication units and to seek incentives from the Centre under the India Semiconductor Mission (ISM).