In a strategic move, Micron Technology Inc. is set to establish multiple semiconductor assembly and packaging units in India alongside its planned fabrication unit. This decision underscores Micron’s commitment to viewing India as a long-term market and manufacturing destination for semiconductors.
Minister of State for Electronics and Information Technology, Rajeev Chandrasekhar, emphasized the significance of Micron’s initial investment in India, which has encouraged other industry players to consider India seriously for semiconductor assembly and manufacturing. The government is actively supporting this endeavor with a substantial financial assistance package of approximately $1.95 billion to Micron.
Micron’s CEO, Sanjay Mehrotra, announced at Semicon India 2023 that the company would embark on its next phase of expansion in the latter half of the decade. This expansion includes an $800 million investment to establish a semiconductor assembly, testing, marking, and packaging (ATMP) unit in Gujarat’s Sanand. It is anticipated that additional units will follow suit after the successful launch of the first one.
Minister Chandrasekhar highlighted that India has created the necessary policy framework to attract global semiconductor leaders and noted that discussions with various entities in the semiconductor sector have gained momentum, with previously hesitant companies now expressing active interest.
Historically, semiconductor fabs and packaging units tend to proliferate once established. Countries like Malaysia and Japan have witnessed the development of ATMP hubs triggered by investments from single companies over the years.
The government’s financial commitment to Micron amounts to $1.95 billion, contributing to a total investment of $2.75 billion. Construction of the facility is expected to commence this year, with the first phase projected to become operational by late 2024. The government has publicly stated its aim to produce the first Indian-made chip by December 2024.
The second phase of expansion, slated for the latter half of the decade, is expected to generate up to 5,000 new direct jobs at Micron, in addition to those created in the initial phase.
This significant development underscores India’s growing prominence in the global semiconductor industry, with Micron’s investment paving the way for a promising future.
