Computer chip maker Micron will set up its semiconductor assembly and test plant in Gujarat with a total investment of $2.75 billion (about Rs 22,540 crore).
Micron said in a statement on Thursday that it would invest $825 million on its part on this plant to be developed in two phases. The remaining amount will be invested by the Central and State Governments.
The US company said that this semiconductor plant has been approved under the Augmented Assembly, Testing, Marking and Packaging (ATMP) scheme of the Government of India. Under this scheme, the central government will provide financial support of 50 percent of the total cost of the project, while 20 percent will be given by the Gujarat government.
Micron said, “The phased construction of this assembly and test facility in Gujarat is expected to start in the year 2023 itself. Five lakh square feet area will be developed in the first phase and will be operational by the end of 2024.”
The company said construction of the second phase of the plant is expected to begin in the second half of this decade. According to the company, Gujarat has been selected for this plant based on its manufacturing infrastructure, favorable business environment and talent pool.
Sanjay Mehrotra, President and CEO of the company, said, “We are excited about the steps India is taking to create a more local semiconductor ecosystem. The establishment of the Gujarat plant will help in expanding its global presence.”
The semiconductor chip maker said the plant, to be set up with a total investment of $2.75 billion, would provide direct employment to about 5,000 people while 15,000 people would continue to get indirect employment for several years.
“The new facility will be able to perform assembly and test manufacturing of both DRAM and NAND products, as well as meet demand from local and international markets,” Micron said.
Information Technology and Telecom Minister Ashwini Vaishnav said that the establishment of this plant of Micron will bring radical changes in the semiconductor landscape of India and will provide employment to thousands of people. He said, “This investment will prove to be an important milestone in the emergence of semiconductor ecosystem in the country.”
Welcoming the investment plan, Minister of State for Electronics and Information Technology Rajeev Chandrasekhar said, “This is a huge milestone in India’s development roadmap as a semiconductor country.”
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