Micron’s investment a big milestone in India semiconductor roadmap: Chandrashekhar

Micron’s investment a big milestone in India semiconductor roadmap: Chandrashekhar

Tech News

New Delhi: Micron’s investment in India is a big milestone in the country’s roadmap as a semiconductor nation, said minister of state for electronics and information technology Rajeev Chandrashekhar told Mint, following the US-based technology makers $825 investment announcement into India on Thursday to make an assembly and testing facility.

 “This is a big milestone in India’s roadmap and growth as a semiconductor nation. In the last 18 months, after the announcement of semiconductor vision by PM Narendra Modi and the planned investment of 76,000 Cr to catalyze and build India’s semicon ecosystem, much progress has been made,” he said, noting that the progress made has been in a short period of time. 

He added that more announcements are expected to be made going forward as India grow to become a crucial partner in global electronics and semiconductor value chains. 

“This is just a beginning as there is more to come as India rapidly grows as a significant and trusted partner to global electronics and semiconductor value and supply chains,” he added. 

Idaho-headquartered Micron on Thursday confirmed semiconductor assembly, testing facility in Sanand, Gujarat where it will invest $825 million in two phases of the project, with total investment of $2.75 billion including government incentives under PLI scheme. 

In the first phase, the 500,000 sq ft plant will begin manufacturing later this year and the second phase to commence in second half of this decade. 

The facility will be used for assembly and testing of DRAM and NAND flash modules, and the project will create 5,000 direct and 15,000 indirect community jobs.

“Micron’s new facility will enable assembly and test manufacturing for both DRAM and NAND products and address demand from domestic and international markets.

Phased construction of the new assembly and test facility in Gujarat is expected to begin in 2023,” the company said in a statement.

Micron added that it will ramp capacity gradually over time in line with global demand trends. 

Micron will receive 50% fiscal support for the total project cost from the Indian central government and incentives representing 20% of the total project cost from the state of 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.

 “We are excited about the steps India is taking to develop the local semiconductor ecosystem,” said Micron President and CEO Sanjay Mehrotra. “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.”

Micron’s plans are part of the company’s strategy to meet expected long-term demand for memory and storage across markets and complement the company’s global assembly and test network.

 “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 Union Cabinet Minister for Railways, Communications, Electronics and IT Ashwini Vaishnaw. 

 “This investment will be a crucial building block in the country’s blossoming semiconductor ecosystem.”

Micron said it selected the state of Gujarat due to its manufacturing infrastructure, conducive business environment and a well-established talent pipeline in the SANAND Industrial Park (Gujarat Industrial Development Corporation – GIDC).

 “After more than a year of discussions with Indian government officials, spearheaded by the India Semiconductor Mission and the state of Gujarat, Micron is pleased to bring its industry-leading assembly and test capabilities to be a part of this transformation in India’s semiconductor industry,” said Micron’s senior vice president of global assembly and test operations Gursharan Singh.

Micron’s new facility will focus on transforming wafers into ball grid array (BGA) integrated circuit packages, memory modules and solid-state drives.

Micron 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. Micron is committed to designing and building the facility to meet or exceed Leadership in Energy and Environmental Design (LEED) Gold standards. Additionally, the facility will use advanced water-saving technologies to enable Zero Liquid Discharge.

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Updated: 22 Jun 2023, 07:32 PM IST

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