Micron will set up its first semiconductor plant in Gujarat

American chip maker company Micron is going to set up its first semiconductor plant in India soon. Micron has also made an official announcement to set up the plant. For this plant, the company will invest about Rs 6,700 crore ($ 825 million) in two phases. The company has said that it will set up its first plant in India in Gujarat. This semiconductor plant will be operational by the end of 2024.
Micron said that they will set up a new semiconductor assembly and test plant in Gujarat. The total investment in the plant will be $ 2.75 billion (about Rs 22,540 crore) with the help of the central government and the state government of Gujarat. PM Modi had invited Micron Technology to boost semiconductor manufacturing in India and said the country can provide a competitive advantage in various parts of the semiconductor supply chain.
Micron's plant has been approved under the government's Modified Assembly, Testing, Marking, and Packaging (ATMP) scheme. Under the scheme, Micron will get 50% financial assistance towards the total project cost from the Central Government and 20% incentive financial assistance towards the total project cost from the state of Gujarat.
Micron said construction of the facility in Gujarat is expected to begin in 2023. The first phase of the project is likely to start in late 2024. While the second phase is expected to start in the second half of the decade. The company said it would create 5,000 new direct jobs and 15,000 community jobs over the next several years.
Micron's new plant will be an assembly and test manufacturing facility for both DRAM and NAND products, the company said, adding it will also meet demand from domestic and international markets.
IT and Railways Minister Ashwini Vaishnav said, "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 construction jobs." This investment will prove to be an important building block in the country's emerging semiconductor ecosystem.
PM Modi, who is visiting America, has also invited Applied Materials in India to develop process technology and advanced packaging capabilities. Modi discussed the company's potential for collaboration with educational institutions in India to create a skilled workforce during his meeting with Applied Materials President and CEO Gary E. Dickerson.
The government of India has also announced a PLI scheme to encourage semiconductors in the country. Global companies are looking at India as an investment destination for semiconductors. The Indian semiconductor market was valued at $27.2 billion in 2021 and is expected to grow at 19% annually to reach $64 billion by 2026.