Micron Technology, the US memory chip manufacturer, has embarked on the construction of its semiconductor packaging facility in Gujarat, marking the commencement of India’s maiden such establishment. This development underscores a significant stride in Micron’s aspirations in chip manufacturing.
Tata Projects has been selected by Micron to oversee the construction of the semiconductor assembly and testing plant, situated in Sanand near Ahmedabad. Concurrently, Micron has initiated the recruitment process for the new facility.
The project will unfold in two phases, with the initial phase encompassing a 500,000 square feet cleanroom space slated for operation by late 2024. Sources familiar with the project estimate the cost of phase one to be around Rs 4,000 crore, which includes not only the construction but also the sourcing of equipment for chip packaging, a task also entrusted to Tata Projects.
The entire manufacturing facility, an endeavor amounting to $2.75 billion, will be a collaborative effort with Micron investing $825 million. The central government will shoulder approximately 50 percent of the total setup cost in line with its semiconductor manufacturing incentive policy, while the Gujarat government will extend various reliefs accounting for about 20 percent of the expenses.
Micron’s Senior Vice President, Gursharan Singh, disclosed, “Our new site, spanning 1.4 million square feet and encompassing 500,000 square feet of cleanroom, is anticipated to be operational by the close of 2024. Additionally, we are envisioning Phase-2 of the project, mirroring the construction of Phase-1. Micron’s investment of $825 million over both phases will generate 5,000 direct job opportunities in Sanand and contribute to 15,000 community jobs in the ensuing years.”
The Assembly, Test, Marking, and Packaging (ATMP) facility will occupy a 93-acre expanse in Sanand GIDC-II industrial estate.
India’s IT Minister, Ashwini Vaishnaw, confirmed that Micron’s supply chain partners have already assessed the site and will soon establish their presence in the vicinity, ensuring the complete ecosystem’s functionality.
Minister of State for Electronics and IT, Rajeev Chandrasekhar, expressed the significance of this momentous event, emphasizing India’s leap in the semiconductor domain. He stated, “For a country that has missed opportunities for the last 70 years repeatedly through a combination of ineptness, lack of political vision, and lack of resources, this is a big moment.”
While the facility is anticipated to be ready by the close of the following year, sources indicate that the inaugural chips may roll off Micron’s production lines by the first quarter of 2025, contingent on the establishment of the supply chain partners within proximity.
Chandrasekhar highlighted the strategic importance of an indigenous chip packaging plant, particularly in the context of current geopolitical volatility. He underscored the significance of digital autonomy and its role in shaping application platforms and device-side ecosystems.
Vaishnaw added that the project’s construction commenced just 90 days after the agreement with Micron was formalized. He also noted that the demand for semiconductor chips in India is currently valued at Rs 2 lakh crore and is projected to grow to Rs 5 lakh crore in the coming years.
