NEW DELHI: In what could be a turning point in India’s mission to become a semiconductor hub, the US-based Micron Technology on Thursday announced its plan to invest `$825 million to set up its semiconductor assembly and test plant in Gujarat.
The few facilities of Micron will procure and package chips for clients at the plant, or other companies could send their chips for testing before shipping. The company will assemble and test manufacturing for both DRAM and NAND products and address demand from domestic and international markets. “We are excited about the steps India is taking to develop the local semiconductor ecosystem,” said Micron President and CEO Sanjay Mehrotra.
This is the first approval in the country’s semiconductor mission, and Micron’s plant has been approved under the government’s ‘Modified Assembly, Testing, Marking and Packaging (ATMP) scheme.
As per the scheme, the company will receive 50% fiscal support for the total project cost from the government and incentives representing 20% from the state of Gujarat. The combined investment by Micron and the two government entities over the course of both phases will be up to $2.75 billion.
“Micron’s investment to set up assembly and test manufacturing in India will fundamentally transform India’s semiconductor landscape and generate tens of thousands of high-tech and construction jobs,” said Cabinet Minister for Railways, communications, electronics and IT Ashwini Vaishnaw. “This investment will be a crucial building block in the country’s blossoming semiconductor ecosystem.”
The construction will begin from this year, and it will include 500,000 square feet of planned cleanroom space and will become operational in late 2024. Micron believes the project is likely to create up to 5,000 new direct jobs and 15,000 community jobs over the next several years.
“This is a big milestone in India’s road map and growth as a semiconductor nation… This is just a beginning as there is more to come as India rapidly grows as a significant and trusted partner to Global electronics & semiconductor Value and Supply Chains,” said Rajeev Chandrasekhar, MoS IT. In December 2021, the government had first announced a $10 billion semiconductor incentive programme.