Micron Technology, a prominent American semiconductor manufacturer, has initiated the construction of a semiconductor testing and assembly plant in Sanand, Gujarat, with an investment of $2.75 billion. This project represents a significant milestone in India's endeavor to fulfill its domestic semiconductor requirements and reduce its dependence on imports.
This development comes just three months after Micron initially announced its plans to establish the plant, and it stands as the largest investment under the India Semiconductor Mission (ISM).
The groundbreaking ceremony (Bhoomi Pujan) for this expansive 93-acre facility took place on Saturday, approximately 90 days after Prime Minister Narendra Modi finalized the deal with Micron's leadership during his visit to the United States.
The construction of this project is anticipated to span slightly over a year, and Union Minister of Information and Technology, Ashwini Vaishnaw, has stated that the first chip production from the facility is expected to commence by December 2024.
Minister Vaishnaw hailed this development as "an example of a double engine government," highlighting the swift progress from land allocation to signing all project agreements and now embarking on the actual construction work.
Semiconductor chips are indispensable components in electronic devices such as smartphones, and laptops, as well as various electronic elements in automobiles, medical equipment, industrial machinery, and more. Currently, India fulfills its $24 billion semiconductor demand entirely through imports.
According to Minister Vaishnav, India is on the path to meeting its domestic demand and potentially becoming a chip exporter. He stated, "Currently, the country is witnessing a demand of 2 lakh crore chips, and in the coming years, this is expected to rise to 5 lakh crores. The way we are progressing, India will not only cater to domestic demand but will also become an exporter of chips."
The Micron project is projected to create up to 5,000 direct employment opportunities with Micron and an additional 15,000 jobs within the community in the years to come.
The government also envisions that Micron's foray into India's assembly, testing, marking, and packaging (ATMP) sector will attract other companies. Minister Vaishnaw noted that two major semiconductor proposals are currently in progress and are expected to materialize in the coming months.
The India Semiconductor Mission, launched by the central government in December 2021, seeks to establish India as a significant player in semiconductor technology.
