NEW DELHI :Micron Technology Inc. said Thursday it will set up a $2.75 billion semiconductor assembly and test facility in India, the first of its kind in the country. The move also marks the first approval under the government’s $10 billion incentive plan to encourage chipmaking.
NEW DELHI :Micron Technology Inc. said Thursday it will set up a $2.75 billion semiconductor assembly and test facility in India, the first of its kind in the country. The move also marks the first approval under the government’s $10 billion incentive plan to encourage chipmaking.
The US chipmaker will establish an assembly, testing and packaging facility for dynamic random access memory (DRAM) and Nand flash modules in India. The plant will be established in two phases, with the first phase involving the construction of a 500,000-square-foot assembly facility in Sanand, Gujarat, scheduled to start later this year. The second phase is expected to be implemented in the second half of this decade.
The US chipmaker will establish an assembly, testing and packaging facility for dynamic random access memory (DRAM) and Nand flash modules in India. The plant will be established in two phases, with the first phase involving the construction of a 500,000-square-foot assembly facility in Sanand, Gujarat, scheduled to start later this year. The second phase is expected to be implemented in the second half of this decade.
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Rival US semiconductor maker Applied Materials has also announced a $400 million investment to build an engineering center in Bangalore. The investment will be distributed over four years in the engineering center, which will be used for the development and commercialization of semiconductor manufacturing equipment.
Micron will invest $825 million directly, with the remaining $2.75 billion coming from the central and state governments. The American company will benefit from government incentives, by virtue of which it will receive 50% of the total cost of its project as financial support from the Center. In addition, the Gujarat state government will offer Micron 20% of the total cost of the project as an incentive.
The company said that once completed, the facility will create “up to 5,000 new direct Micron jobs and 15,000 community jobs in the coming years.”
Meanwhile, Applied Materials said in a statement that the new facility will seek to train “future talent in the semiconductor industry” and will bring together “engineers, global and national suppliers, and world-class research and academic institutions.” Srinivas Satya, country president of Applied Materials India, said in a statement that the Center will “play a critical role in achieving much-needed synergies between engineers, academics and suppliers.”
“This is a huge milestone in India’s roadmap and growth as a semiconductor nation. In the past 18 months, after PM’s semiconductor vision announcement Narendra Modi and the planned investment of $76 crore to catalyze and build India’s semiconductor ecosystem, a lot of progress has been made,” said union minister of state for electronics and IT Rajeev Chandrasekhar, noting that rapid progress was made in a short period of time.
“This is just the beginning – there is more to come as India grows rapidly as an important and trusted partner for global semiconductor and electronics supply and value chains,” added Chandrashekhar.
Sanjay Mehrotra, Micron’s President and CEO, said, “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.”
Railway, IT and Telecommunications Minister Ashwini Vaishnaw said Micron’s investment “will fundamentally transform India’s semiconductor landscape and create tens of thousands of high-tech and construction jobs.”
Micron is the world’s second largest DRAM maker as of December last year, with a 28.1% market share, according to market researcher Trendforce. In the September quarter, Statista reported that Micron was the world’s fourth largest Nand flash maker, with a 12.3% market share. Samsung remains the leading manufacturer of DRAM and Nand flash modules.
Industry leaders and stakeholders welcomed the semiconductor facilities, saying they would help develop a domestic component supply chain for the semiconductor industry.
Vivek Tyagi, a veteran of the semiconductor industry and adviser to the board of the industry body, the Indian Semiconductor and Electronics Association (IESA), said: “The first semiconductor packaging and testing facility will boost the supply chain India for long-term chipmakers such as Micron’s global supply providers can also come to India for the long-term. The facility will also help boost and create a number of indirect jobs along with direct employment.”
Sanjay Gupta, president of IESA, said the new announcements show India’s ability to attract “high-value investment and foster technological advances…strengthen India’s position as a hub for semiconductor manufacturing and provide a platform for for collaboration, knowledge sharing and technology”. transfer.”
Micron outbid other applicants for the semiconductor PLI scheme, notably a joint venture between national company Vedanta and Taiwanese contract manufacturer Foxconn. On January 12, the Mint reported that Vedanta-Foxconn JV led other applicants to become the first probable entity to start setting up its facilities. On April 19, Akarsh Hebbar, the company’s managing director, said the company had identified a piece of land in Gujarat for its planned facility and signed MoUs with companies in Japan and South Korea to create an ecosystem of semiconductor components.
David Reed, the company’s chief executive, said at the time that the company expects to generate revenue beginning in fiscal year 27. However, it is unclear at this time how its plans will proceed. Reports claim that the company’s production plan is stuck due to problems with supply chain partners.
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