In June, PM Modi met with Sanjay Mehrotra, Micron’s CEO, who announced plans for a new chip assembly and test facility in India.
True to its word, the US-based semiconductor manufacturer has initiated the construction of a chip assembly and test facility valued at Rs 22,500 crore (approximately $2.75 billion).
New Chip Assembly and Testing Facility Planned in India
This newly planned facility, situated in Sanand, Gujarat, marks a significant milestone for India as it takes a stride towards establishing itself as a global chip manufacturing hub. The facility, known as the Assembly, Test, Marking, and Packaging (ATMP) unit, will be developed on a sprawling 93-acre parcel of land at the Sanand GIDC-II industrial estate. Micron, a computer storage chip manufacturer, is poised to commence the construction of this semiconductor plant, which is anticipated to become operational within 18 months.
The foundation ceremony witnessed the presence of notable figures including Union IT and Railways Minister Ashwini Vaishnaw, Union MoS for Electronics and IT Rajeev Chandrasekhar, and Gujarat CM Bhupendra Patel, among others. The primary focus of Micron in this factory will be the transformation of wafers into ball grid arrays (BGA), encompassing integrated circuit packages, memory modules, and solid-state drives.
Company Affirmed Initial Investment of $875 Million
The company has affirmed an initial investment of $875 million earmarked for constructing the plant in two phases. The remaining investment will receive support from both state and central governments. Projections suggest that this chip-making plant will generate approximately 5,000 direct jobs and 15,000 community job opportunities within the next five years.
In response to this development, Rajeev Chandrasekhar remarked, “The Micron groundbreaking ceremony is a beacon for the growth and evolution of the semiconductor ecosystem in India, signaling to prospective investors in this sector. The facility inaugurates an exciting phase in India’s semiconductor ecosystem, positioning India as a semiconductor nation. The digital economy is poised to contribute 20% to the gross domestic product. This ceremony marks a significant milestone in India’s journey.”
Gujarat CM Bhupendra Patel emphasized the rapid progress, occurring just three months after the signing of the Memorandum of Understanding (MoU). He attributed this swift progress to the proactive policies of the government and projected that the state would evolve into a hub for semiconductor and chip manufacturing. This plant signifies the first step towards self-reliance in the semiconductor sector and the creation of over 20,000 jobs. Meanwhile, Ashwini Vaishnaw highlighted the Prime Minister’s commitment to making India a hub for the semiconductor sector through the establishment of this plant.
