Sanjay Mehrotra, the CEO of Micron, revealed plans for a new chip assembly and testing facility in India during a meeting with Prime Minister Modi in June.
True to its word, the US-based semiconductor company has started building a chip assembly and test facility with an estimated cost of $2.75 billion (Rs 22,500 crore).
India to Build New Chip Assembly and Testing Facilities
This newly constructed factory, which is located in Sanand, Gujarat, is a big step forward for India as it works to establish itself as a major center for chip manufacture. At the Sanand GIDC-II industrial park, the Assembly, Test, Marking, and Packaging (ATMP) unit facility will be built on a vast 93-acre tract of land. This semiconductor plant will soon begin construction and is expected to be operational in 18 months. Micron is a manufacturer of computer storage chips.
A number of prominent individuals attended the foundation ceremony, including Gujarat Chief Minister Bhupendra Patel, Union IT and Railways Minister Ashwini Vaishnaw, and Union MoS for Electronics and IT Rajeev Chandrasekhar.
The conversion of wafers into ball grid arrays (BGA), which include integrated circuit packages, memory modules, and solid-state drives, will be Micron’s main focus in this factory.
First Investment of $875 Million Confirmed by the Business
The corporation confirmed an initial expenditure of $875 million intended for the two phases of building the plant. Both the state and federal governments will contribute to the remaining investment. For the following five years, it is predicted that this chip-making facility would create 15,000 new opportunities for community employment in addition to 5,000 direct jobs.
The Micron groundbreaking ceremony is a lighthouse for the expansion and evolution of the semiconductor ecosystem in India, signaling to potential investors in this area, said Rajeev Chandrasekhar in response to this event. The establishment establishes India as a semiconductor nation and ushers in an exciting new phase in the country’s semiconductor ecosystem. The gross domestic product is expected to increase by 20% as a result of the digital economy. In India’s development, this ceremony represents a key turning point.
Bhupendra Patel, the chief minister of Gujarat, highlighted the quick development that took place barely three months after the Memorandum of Understanding was signed (MoU). He predicted that the state will develop into a hub for semiconductor and chip manufacturing and ascribed its quick success to the government’s proactive initiatives.
With the construction of this plant, the semiconductor industry will take its first step toward independence while also adding over 20,000 new jobs. In the meantime, Ashwini Vaishnaw emphasized the Prime Minister’s intention to using the construction of this factory to turn India into a semiconductor industry hub.