Micron Announces Up to $825 Million Investment in Gujarat Chip Factory – Micron Technology, a US memory chip company, announced on Thursday that it would invest up to $825 million in a new chip manufacturing and testing facility in Gujarat, India, its first factory in the nation.
Micron stated that the overall investment in the facility will be $2.75 billion with backing from the Indian national government and the state of Gujarat. The Indian national government will contribute 50% of the total, with the state of Gujarat contributing 20%.
According to Reuters, India’s Cabinet approved the project earlier this week, ahead of Prime Minister Narendra Modi’s state visit to the United States, which began on Wednesday.
Micron stated that the building of the new facility in Gujarat should be expected to begin in 2023, with the first phase of the project slated to be operational in late 2024. It is predicted that the second phase of the project is expected to start in the second part of the decade. Together, the two stages will result in up to 5,000 new direct Micron jobs.
The Indian government reportedly authorized the US chipmaker’s request for a new semiconductor testing and packaging operation in the country earlier this week. A senior government source confirmed the news on Tuesday, ahead of Prime Minister Narendra Modi’s official visit to the United States. The scale of the incentive package necessitated Cabinet approval, according to the source. Micron’s idea had previously been disclosed but had not been approved by the government.
Micron Technology’s ambitions come as the White House urges US semiconductor makers to invest in India, with discussions underway about possible additional investments, according to US administration officials.
According to an Indian industry source familiar with Micron’s clearances, the Assembly Testing Marking, and Packaging facility will be built in the city of Sanand.