US semiconductor giant Micron to invest $825 mn for assembly, test facility in Gujarat

While the total investment in the plant is expected to be USD 2.75 billion, Micron’s investment will be up to USD 825 million over the two phases of the project, and the remaining amount will be funded by the Centre and the State government.

New Delhi June 23 dmanewsdesk:  American semiconductor giant Micron Technology Inc on Thursday announced plans to invest USD 825 million in India to build a new semiconductor assembly and test facility in Gujarat.

The announcement followed a meeting between Prime Minister Narendra Modi and Micro Technology CEO Sanjay Mehrotra on Wednesday.

Micron Technology, which is listed on NASDAQ, is one of the world’s largest semiconductor companies. In a statement issued on Thursday, the company said its new facility would enable assembly and test manufacturing for both DRAM and NAND – types of memory or components that store electronic data, products and address demand from domestic and international markets.

While the total investment in the plant is expected to be USD 2.75 billion, Micron’s investment will be up to USD 825 million over the two phases of the project, and the remaining amount will be funded by the Centre and the State government under the Modified Assembly, Testing, Marking and Packaging (ATMP) Scheme.

“Under the government’s ‘Modified Assembly, Testing, Marking and Packaging (ATMP) Scheme’, 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 company said in a statement.

It added that the combined investment by Micron and the two government entities over the course of both phases would be up to USD 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,” it said.

Micron Technology said the 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 cleanroom space, will start to become operational in late 2024, and Micron will ramp capacity gradually over time in line with global demand trends. Micron said it expects Phase 2 of the project, which would include construction of a facility similar in scale to Phase 1, to start towards the second half of the decade.

The plant is expected to create up to 5,000 new direct Micron jobs and 15,000 community jobs over the next several years, the company added.

“We are excited about the steps India is taking to develop the local semiconductor ecosystem,” Mehrotra said. “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,” he added.

“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,” the company said.

Union Railways, Communications, Electronics and IT Minister Ashwini Vaishnaw was also quoted in the statement. He 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,” Vaishnaw added.

Minister of state for Electronics and IT Rajeev Chandrasekhar said, “This is a big 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 ji and the planned investment of Rs 76,000 Cr to catalyze and build India’s Semicon Ecosystem, much progress has been made.”

The company said it selected 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).

Source: The Print