Semiconductor giant, Micron Technology on Thursday, announced its plan to build a new assembly and test facility in Gujarat. The facility will enable assembly and test manufacturing for both Dynamic random-access memory (DRAM) and NAND products, and address demand from domestic and international markets
Boise, Idaho-based Micron Technology will invest up to $825 million in the Indian semiconductor facility, the company said in a statement.
The phased construction of the new assembly and test facility is expected to commence in 2023. Phase 1 will include 500,000 square feet of planned cleanroom space, which will become operational in late 2024. The company expects Phase 2 of the project, which will include construction of a facility similar in scale to Phase 1, to begin by the second half of the decade.
The company claims that the project will create up to 5,000 new direct Micron jobs, and 15,000 community jobs over the next several years.
Union Cabinet Minister for Railways, Communications, Electronics and IT Ashwini Vaishnaw said, “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. This investment will be a crucial building block in the country’s blossoming semiconductor ecosystem.”
Under the government’s ‘Modified Assembly, Testing, Marking and Packaging (ATMP) Scheme,’ the company will receive 50 percent fiscal support for the total project cost from the Indian government, and incentives representing 20 percent of the total project cost from the state of Gujarat. Furthermore, the combined investment by Micron and the two government entities over the course of both phases will be up to $2.75 billion.
The semiconductor company added that government support will help fund the project and facilitate access to essential semiconductor infrastructure and resources, to drive innovation and enhance local talent development.