US-based Micron begins construction of $2.75 Bn semiconductor plant in Gujarat
The US-based Micron Technology, a computer memory manufacturer, has broken ground in Gujarat's Sanand to build a $2.75 billion semiconductor testing and assembly plant. The plant will be spread across an area of 500,000 square feet of land. The information about the construction was shared by Union Minister Rajeev Chandrasekhar. The construction work began just three months after the company announced its intention to open a plant in India. This has also become the largest investment under the India Semiconductor Mission (ISM) as Micron is contributing $825 million. The rest of the amount is being covered through subsidies, as per reports.
With the construction starting, the plant is expected to become operational by late 2024. Interestingly, Micron is the first company that was approved under India's semiconductor mission. The deal was signed during PM Narendra Modi's US visit in July. As per a report by Manufacturing Today, Micron is also considering setting up three to four chip fabrication factories in India. The ISM is a $10 billion initiative aimed at kickstarting India's semiconductor industry by offering subsidies to companies for starting a manufacturing ecosystem in India. Micron is the first, and more are expected to invest in India soon.
"So this is an important piece of the whole semiconductor ecosystem that is being built out and this facility will certainly represent a very important part of that semiconductor vision that the Prime Minister laid out in December 2021," The New Indian Express quoted Union Minister Rajeev Chandrasekhar as saying.
After the deal was signed, Union Minister Ashwani Vaishnaw posted on X, “Historic day for India… Thanks to PM @narendramodi Ji's comprehensive semiconductor mission.
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