Micron to build new semiconductor chip assembly and test facility in Gujarat, India

Date: 22/06/2023
Micron announces its plan to build new semiconductor chip assembly and test facility in Gujarat, India. Both DRAM and NAND wafers to get assembled/packaged here. Micron’s new facility to focus on transforming wafers into ball grid array (BGA) integrated circuit packages, memory modules and solid-state drives.

Construction to begin in 2023 and to be operational by late 2024. Micron to ramp capacity gradually over time in line with global demand trends. Micron 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 new facility to address demand from domestic and international markets. This facility to create up to 5,000 new direct Micron jobs and 15,000 community jobs over the next several years. 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 combined investment by Micron and the two government entities over the course of both phases will be up to $2.75 billion, where Micron's investment is $825 Million. Government support will help fund the project and facilitate access to essential semiconductor infrastructure and resources to drive innovation and enhance local talent development, stated by Micron in its release.

“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.”

Micron said its 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.

“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 Union Cabinet Minister for Railways, Communications, Electronics and IT Shri Ashwini Vaishnaw. “This investment will be a crucial building block in the country’s blossoming semiconductor ecosystem.”

Micron said it selected the state of 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).

“After more than a year of discussions with Indian government officials, spearheaded by the India Semiconductor Mission and the state of Gujarat, Micron is pleased to bring its industry-leading assembly and test capabilities to be a part of this transformation in India’s semiconductor industry,” said Micron’s Senior Vice President of Global Assembly and Test Operations Gursharan Singh.

Micron will build and operate the assembly and test facility in accordance with the company’s sustainability goals and in line with local and global environmental commitments. Micron is committed to designing and building the facility to meet or exceed Leadership in Energy and Environmental Design (LEED) Gold standards. Additionally, the facility will use advanced water-saving technologies to enable Zero Liquid Discharge.

News Source: Micron