Micron commits to setting up semiconductor manufacturing unit in India, bolsters PM Modi’s ambitions

In a big boost for Prime Minister Narendra Modi’s dream to make India a semiconductor hub, US-memory chip major Micron has decided to setup up a new semiconductor assembly and test facility here. The news comes during PM Modi’s visit to the US, during which he met Micron CEO Sanjay Mehrotra and invited him to boost semiconductor manufacturing in India.

Micron will set up a new manufacturing unit for both DRAM and NAND products in Gujarat, which will cater to the demands of both the domestic and international markets.

“We are excited about the steps India is taking to develop the local semiconductor ecosystem,” Mehrotra said. “I am grateful to the Indian government and all of the officials involved that 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.”

According to Micron, phased construction of the new facility in Gujarat is expected to begin this year. Phase 1, which will include 500,000 square feet of planned cleanroom space, will become operational in late 2024, and Micron will ramp capacity gradually over time in line with global demand trends. Micron expects Phase 2 of the project, which would include construction of a facility similar in scale to Phase 1, to start towards the second half of the decade.

The company will invest up to $825 million over the two phases of the project and will create up to 5,000 new direct jobs and 15,000 community jobs over the next several years, the firm said. Under the government’s Modified Assembly, Testing, Marking and Packaging (ATMP) Scheme, Micron will receive 50% fiscal support for the total project cost from the central government and incentives representing 20% of the total project cost from Gujarat. The combined investment by Micron and the two government entities over the course of both phases will be up to $2.75 billion. Government support will help fund the project and facilitate access to essential semiconductor infrastructure and resources to drive innovation and enhance local talent development says the company.

“Micron’s investment to set up assembly and test manufacturing in India will fundamentally transform India’s semiconductor landscape and generate tens of thousands of high-tech and construction jobs,” said Ashwini Vaishnaw, Union Minister of Railways, Communications, Electronics and IT. “This investment will be a crucial building block in the country’s blossoming semiconductor ecosystem.”

Micron’s facility will focus on transforming wafers into ball grid array (BGA) integrated circuit packages, memory modules and solid-state drives. It will build and operate the assembly and test facility in accordance with the company’s sustainability goals and in line with local and global environmental commitments. Additionally, the facility will use advanced water-saving technologies to enable Zero Liquid Discharge.