Micron Technology To Establish $2.75 Bn Semiconductor Assembly And Test Facility In India
Micron Technology, a renowned semiconductor company, on Thursday unveiled its project to construct a cutting-edge assembly and test facility in Gujarat, India.
The facility, the first of its kind in India, will cater to the assembly and test manufacturing needs of both DRAM and NAND products, serving domestic as well as international markets.
The phased construction of the facility is expected to commence in 2023, with the first phase encompassing a planned cleanroom space of 500,000 square feet. It is projected to become operational by late 2024, with Micron planning to gradually increase capacity in alignment with global demand trends. Phase 2 of the project, mirroring the scale of Phase 1, is scheduled to commence in the latter half of the decade.
Micron's investment in the project will amount to approximately USD 825 million across both phases. This substantial undertaking will generate up to 5,000 direct job opportunities within Micron and an additional 15,000 community jobs in the coming years.
To facilitate this significant investment, Micron will receive fiscal support of 50 per cent from the Indian central government under the "Modified Assembly, Testing, Marking and Packaging (ATMP) Scheme." Furthermore, the state of Gujarat will provide incentives equivalent to 20 per cent of the project cost. In total, Micron, along with the two government entities, will contribute up to USD 2.75 billion towards the venture.
“We are excited about the steps India is taking to develop the local semiconductor ecosystem,” said Micron President and CEO Sanjay Mehrotra. “I am grateful to the Indian government and all of the officials involved that made this investment possible. 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.”
The establishment of this assembly and test facility complements Micron’s existing 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 Ashwini Vaishnaw, Union Cabinet Minister for Railways, Communications, Electronics and IT. “This investment will be a crucial building block in the country’s blossoming semiconductor ecosystem.”
Gujarat was chosen as the location for the facility due to its well-established manufacturing infrastructure, conducive business environment, and the availability of a skilled talent pool within the SANAND Industrial Park, administered by the Gujarat Industrial Development Corporation (GIDC).
Micron said it is committed to constructing and operating the facility in accordance with its sustainability goals and adhering to local and global environmental commitments. The company will look to design and build the facility to meet or exceed Leadership in Energy and Environmental Design (LEED) Gold standards, while also implementing advanced water-saving technologies to achieve Zero Liquid Discharge, it added.
