Micron's chip factory construction to commence in 4-6 weeks

05 Jul 2023 CW Team

Union Minister Ashwini Vaishnaw announced that the groundbreaking ceremony for Micron Technology's semiconductor factory will take place in the next four to six weeks. During the launch of the Bharat 6G alliance in New Delhi, Vaishnaw revealed that the land for the factory in Gujarat had already been allocated. He stated, "Significant progress has been made on that project. The government of Gujarat has completed the site allocation and now, the company is preparing to establish the factory."

Vaishnaw mentioned that the groundbreaking ceremony is expected to occur within the next four to six weeks, with the production of the "first Make in India chip" anticipated by December 2024 from this factory. On June 28, Micron, the US-based chipmaker, signed an agreement with the Indian government to construct a semiconductor plant. While Micron plans to invest up to $825 million in the facility, the total investment, including the contribution from the Indian government, will amount to $2.75 billion. The factory will be located in Sanand, Gujarat.

Earlier, on June 22, Micron announced its $2.75 billion investment to establish a semiconductor assembly and testing plant in Gujarat. The Micron facility has received approval under the Centre's "Modified Assembly, Testing, Marking, and Packaging (ATMP) Scheme." As per the scheme, the US-based company will receive 50% fiscal support for the overall project cost from the Centre and an additional 20% fiscal support from the Gujarat government.

Micron stated that phased construction of the new assembly and testing facility in Gujarat is expected to commence in 2023. The first phase, comprising 500,000 sq ft of planned clean-room space, is scheduled to become operational by late 2024, according to a previous statement by Micron. The company also indicated that the plant will generate approximately 5,000 new direct jobs and 15,000 new community jobs over the coming years, contributing to employment opportunities in the region.

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