New Delhi: US semiconductor giant Micron Technology Inc on Thursday announced plans to invest USD 825 million in India to build a new semiconductor assembly and test facility in Gujarat.
The announcement was made on Wednesday after a meeting between Prime Minister Narendra Modi and Sanjay Mehrotra, CEO of Micro Technology.
Micron Technology, which is listed on the NASDAQ, is one of the world’s largest semiconductor companies. In a statement released on Thursday, the company said its new facility will enable assembly and test manufacturing for both DRAM and NAND types of memory or components that store electronic data, products and meet demand from domestic and international markets. Does
While the total investment in the plant is expected to be US$2.75 billion, Micron’s investment will be up to US$825 million in the two phases of the project, and the remaining amount will be funded by the central and state government under the amended assembly. , Testing, Marking and Packaging (ATMP) scheme.
“Under the government’s ‘Amended Assembly, Testing, Marking and Packaging (ATMP) scheme’, Micron received financial assistance of 50% of the total project cost from the Indian central government and incentives representing 20% of the total project cost from the state. Will be Gujarat,” the company said in a statement.
It added that the combined investment by Micron and the two government entities during the two phases would be up to US$2.75 billion. It added, “Government support will help fund the project and facilitate access to the semiconductor infrastructure and resources needed to foster innovation and enhance local talent development.”
Micron Technology said phased construction of the new assembly and test facility in Gujarat is expected to begin in 2023. Phase 1, which will include 500,000 square feet of planned cleanroom space, will become operational in late 2024, and Micron will increase capacity gradually over time in line with global demand trends. Micron said it expects Phase 2 of the project, which will involve construction of a similar scale facility to Phase 1, to begin in the second half of the decade.
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The plant is expected to create 5,000 new direct Micron jobs and 15,000 community jobs over the next several years, the company said.
“We are encouraged by the steps India is taking to develop the local semiconductor ecosystem,” Mehrotra said. “I am grateful to the Government of India and all the officials involved who made this investment possible. Our new assembly and test location in India will enable Micron to expand our global manufacturing base and better serve our customers in India and around the world,” he said.
“Micron’s plans are part of the company’s strategy to meet expected long-term demand for memory and storage across all markets and complement the company’s global assembly and test network,” the company said.
The statement also cited Union Minister for Railways, Communications, Electronics and IT Ashwini Vaishnav. He added: “Micron’s investment to set up assembly and test manufacturing in India will fundamentally change India’s semiconductor landscape and create thousands of high-tech and manufacturing jobs.”
“This investment will be an important building block in the country’s emerging semiconductor ecosystem,” Vaishnav said.
Rajeev Chandrasekhar, Minister of State for Electronics and IT said, “This is a major milestone in the roadmap and development of India as a semiconductor nation. In the last 18 months, following the announcement of the Semiconductor Vision by PM Narendra Modi and a planned investment of Rs 76,000 crore to catalyze and build India’s semicon ecosystem, a lot of progress has been made.
The company said it has chosen Gujarat because of its manufacturing infrastructure, favorable business climate and a well-established talent pipeline at the Sanand Industrial Park (Gujarat Industrial Development Corporation – GIDC).
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