The total cost of the upcoming plant — India’s first major semiconductor investment — comprises $825 million (around Rs 6,760 crore) from Micron and the rest from the government in two phases.“We are excited about the steps India is taking to develop the local semiconductor ecosystem,” Mehrotra said. He said Micron’s new assembly and test location in India will enable the company to expand its global manufacturing base and better serve customers in India and around the world.
Micron’s plant has been approved under the government’s “Modified Assembly, Testing, Marking and Packaging (ATMP) Scheme”. Under the scheme, Micron will receive 50% fiscal support for the total project cost from the Indian government and incentives representing 20% of the total project cost from the state of Gujarat.
“Phased construction of the new assembly and test facility in Gujarat is expected to begin in 2023. Phase 1, which will include 500,000 square feet of planned clean room space, will become operational in late 2024,” Micron said. Micron added that the plant will create up to 5,000 new direct jobs and 15,000 community jobs over the next several years. “Government support will help fund the project and facilitate access to essential semiconductor infrastructure and resources to drive innovation and enhance local talent development,” Micron said.
It will ramp capacity over time in line with global demand trends. The company said it expects Phase 2 of the project, which would include the construction of a facility similar in scale to Phase 1, to start towards the second half of the decade.
IT and telecom minister Ashwini Vaishnaw said Micron’s move will transform India’s semiconductor landscape and generate tens of thousands of hightech and construction jobs. Junior minister for IT & electronics Rajeev Chandrasekhar called it a “big milestone”.
