NEW DELHI: Micron Technology is set to break ground for its semiconductor testing and assembly plant in Gujarat's Sanand on Saturday, said Minister of State for Electronic and Information Technology Rajeev Chandrasekhar.
The company announced an investment of $825 million to establish its semiconductor assembly and testing facility in Gujarat in June 2023. The US-based Micron Technology is the first company approved under India's semiconductor mission under the government's Modified Assembly, Testing, Marking, and Packaging (ATMP) Scheme.
"So this is an important piece of the whole semiconductor ecosystem that is being built out and this facility will certainly represent a very important part of that semiconductor vision that the Prime Minister laid out in December 2021," said Chandrasekhar.
He further added that the new facility highlights the growth and evolution of the semiconductor ecosystem in India to other prospective investors and also signals that the complex supply chain used to support a semiconductor ecosystem is also parallelly underway.
Micron's other facilities 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.
The construction will begin this year, and it will include 500,000 square feet of planned cleanroom space and will start to become operational in late 2024. Micron believes the project is likely to create up to 5,000 new direct Micron jobs and 15,000 community jobs over the next several years.
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.