Micron Launches Construction of $2.75 Billion Semiconductor Facility in Gujarat, India

Micron Technology, a computer memory manufacturer based in the US, has started construction on a semiconductor testing and assembly plant in Sanand, Gujarat. The plant, which will cover 500,000 square feet of land, is estimated to cost $2.75 billion. Union Minister Rajeev Chandrasekhar shared the news about the construction, which began just three months after Micron announced its plans to open a plant in India. This investment by Micron also marks the largest contribution under the India Semiconductor Mission (ISM), with the company providing $825 million. The remaining funds are reportedly being covered through subsidies.

When construction begins, the facility is expected to be operational at the end of 2024. Interestingly, Micron is the first company to be approved under the Indian Semiconductor Mission. The agreement was signed during Prime Minister Narendra Modi’s visit to the US in July. According to a Manufacturing Today report, Micron is also considering setting up three or four chip manufacturing plants in India. ISM is a $10 billion initiative that aims to jump-start India’s semiconductor industry by providing support to companies to establish a manufacturing ecosystem in India. Micron is the first and more are expected to invest in India soon.

“So this is an important part of the whole semiconductor ecosystem that is being built and this facility will certainly be a very important part of the semiconductor vision that the Prime Minister presented in December 2021,” Union Minister Rajeev was quoted as saying by The New Indian Express. Chandrasekhar said.

Micron begins construction of a semiconductor plant

After the deal was signed, Union Minister Ashwani Vaishnaw posted on X: “Historic day for India… Thanks to PM @narendramodi Ji for comprehensive semiconductor mission MoU signed between Micron and Gujarat Govt.

Micron’s additional facilities are responsible for the procurement and packaging of the chips on behalf of customers at the production facility. In addition, third-party companies have the opportunity to send their chips for testing before delivery. The company implements the assembly and strict testing of the manufacturing processes of both DRAM and NAND products to meet the demand of both domestic and international markets.

According to Micron, the project could create up to 5,000 new direct company jobs and 15,000 new community jobs over the next several years.