With an investment of over US$800 million, supported by the Indian National Semiconductor Mission and additional financial backing from Indian authorities to a total of USD 2.75 billion to set up semiconductor assembly and test facility in India.
During Prime Minister Narendra Modi’s state visit to the United States, Micron Technology, a global semiconductor powerhouse, has unveiled plans to construct a cutting-edge assembly and test facility in Gujarat, India.
With an investment of over US$800 million, supported by the Indian National Semiconductor Mission and additional financial backing from Indian authorities to a total of USD 2.75 billion to set up semiconductor assembly and test facility in India. The facility will enhance Micron’s manufacturing capabilities for DRAM and NAND products, meeting the escalating demand from both domestic and international markets.
In the midst of the ongoing US-China tensions and the global push to diversify supply chains, Micron’s decision to invest in India aligns with the goals of the Biden administration. Financial Express Online has reported the plans to diversify serves as a strategic move to mitigate geopolitical uncertainties and strengthen the company’s advanced chip-making capabilities outside China.
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Details of Micron’s plan in India
Phased construction is set to begin in 2023, with the initial phase encompassing a sprawling 500,000 square feet of cleanroom space, scheduled to become operational in late 2024. Micron plans to gradually increase production capacity in Phase 1, with Phase 2 expected to commence in the latter half of the decade, matching the scale of Phase 1.
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The project’s estimated investment of US$825 million across both phases will generate approximately 5,000 new direct jobs at Micron and an additional 15,000 community jobs in the coming years. Micron will benefit from 50 percent fiscal support from the central government and an additional 20 percent in incentives from the state of Gujarat under the “Modified Assembly, Testing, Marking, and Packaging (ATMP) Scheme.” This substantial support will not only fund the project but also provide essential access to semiconductor infrastructure, drive innovation, and nurture local talent development.
Why Gujarat?
The choice of Gujarat as the facility’s location stems from its robust manufacturing infrastructure, favorable business environment, and well-established talent pipeline, particularly in the SANAND Industrial Park (Gujarat Industrial Development Corporation – GIDC).
Gursharan Singh, Micron’s Senior Vice President of Global Assembly and Test Operations, acknowledged the efforts of Indian government officials and praised the India Semiconductor Mission and the state of Gujarat for facilitating this milestone. Singh emphasized that Micron’s cutting-edge assembly and test capabilities would play a crucial role in transforming India’s semiconductor industry.
The state-of-the-art facility will specialize in converting wafers into ball grid array (BGA) integrated circuit packages, memory modules, and solid-state drives, showcasing Micron’s unwavering commitment to innovation and technological advancement.
The facility’s design will align with or surpass Leadership in Energy and Environmental Design (LEED) Gold standards, incorporating advanced water-saving technologies to achieve Zero Liquid Discharge.
Micron’s President and CEO, Sanjay Mehrotra, expressed enthusiasm for India’s growing semiconductor ecosystem, extending gratitude to the Indian government and all parties involved in facilitating this investment. The establishment of the assembly and test facility in India aligns with Micron’s strategy to meet long-term memory and storage demands across global markets while seamlessly integrating with the company’s assembly and test network.
Ashwini Vaishnaw, Union Cabinet Minister for Railways, Communications, Electronics, and IT, lauded Micron’s investment, emphasizing its transformative impact on India’s semiconductor landscape and its potential to create tens of thousands of high-tech and construction jobs.
https://www.financialexpress.com/business/defence-microns-game-changing-investment-state-of-the-art-semiconductor-facility-to-revolutionize-indias-high-tech-landscape-3138226/
