Micron Technology, a prominent US-based semiconductor company, has announced its plans to establish a cutting-edge semiconductor facility in Gujarat, as disclosed by Union Minister Ashwini Vaishnaw during a press conference, recently.
Vaishnaw added that the first domestically manufactured semiconductor chip from this plant is expected to be produced within 18 months, specifically by December 2024.
According to Vaishnaw, the forthcoming Micron plant in Gujarat will be state-of-the-art, contributing significantly to the expansion of India’s semiconductor ecosystem. He highlighted that Micron holds the fifth position among the world’s largest semiconductor manufacturing companies, supplying chips used in various devices such as mobiles, laptops, servers, defence equipment, cameras, electric vehicles, trains, cars, and telecom equipment.
Furthermore, Vaishnaw emphasised that India has been striving to develop semiconductor technology over the past four decades. This development comes shortly after Rajeev Chandrasekhar, the Minister of State for IT, expressed that Micron’s investment proposal for a manufacturing plant in India would provide a boost to the country’s semiconductor ecosystem.
Chandrasekhar stated that this initiative is expected to generate 5,000 direct jobs and 500 new high-end engineering positions, further supporting the growth of startups in India.
Micron’s decision to establish a new assembly and test facility in Gujarat, with an investment of $825 million, was announced soon after Prime Minister Narendra Modi’s meeting with Micron Technology CEO Sanjay Mehrotra in the United States. During the meeting, Prime Minister Modi extended an invitation to enhance semiconductor manufacturing in India and put up the facility that caters to domestic as well as international markets.
Micron has outlined that the construction of the new assembly and test facility will commence in phases throughout 2023. The first phase, spanning 5,00,000 square feet, is expected to begin manufacturing in late 2024, while the second phase is scheduled to commence soon after.
According to company sources, the Indian Government will provide 50 percent fiscal support for the total project cost, with an additional incentive of 20 percent of the total project cost from the government of Gujarat. Micron also disclosed that the combined investment of $2.75 billion will be made from the company and the two Governments across the two project phases.