Micron’s India semiconductor facility is an ATMP unit being built in Gujarat’s Sanand, under a deal signed in June 2023
Micron’s project involves a total investment of up to $2.75 Bn, including fiscal incentives from the Centre and Gujarat government
US-based chipmaker Micron Technology is set to commence the commercial production of semiconductors from its Indian facility by the end of February, as per IT minister Ashwini Vaishnaw.
Vaishnaw told ET on the sidelines of the World Economic Forum (WEF) in Davos. He further added that the pilot production has already begun at several approved semiconductor facilities, and commercial production will follow soon.
Micron’s India semiconductor facility is an assembly, testing, marking and packaging (ATMP) unit being built in Gujarat’s Sanand, under a deal signed in June 2023. The plant will be one of the largest back-end semiconductor facilities in the world, covering nearly 50 acres and focusing on converting wafers into packaged chips, memory modules and solid-state drives.
Construction began in mid-2023, and roughly 60% of Phase-1 work was completed by late 2024, with Tata Projects executing the build. The facility is expected to be handed over to Micron by December 2025, after which the company will decide on operations and production timelines.
Under the India Semiconductor Mission (ISM), Micron’s project involves a total investment of up to $2.75 Bn, including fiscal incentives from the Centre and Gujarat government. Inc42 has reached out to Micron Technology for comments on the development. The story will be updated based on their response.
Vaishnaw said, “Practically every semiconductor industry leader is now designing end-to-end products in India. The most complex chips, including two-nanometre nodes, are being designed in India end to end. Now that manufacturing capability is coming up, they want to manufacture those chips in India.”
“We have set a very clear path, from 28-nanometer to 7-nanometer, to 3-nanometer, to 2-nanometer node. After six decades of persistence, this is finally giving results,” he added.
The government’s push towards the country’s semiconductor industry began in 2021 with the Semicon India programme, with its commitment of INR 76,000 Cr. Under this programme, IT Secretary S Krishnan disclosed that INR 65,000 Cr was allocated for chip production, INR 10,000 Cr for the modernisation of the Semiconductor Laboratory in Mohali and INR 1,000 Cr for the design-linked incentive scheme, last August.
With the global semiconductor market projected to cross $1.1 Tn by 2030, the country is betting huge on the domestic semiconductor players with policies and incentives as well as opening doors for global chip makers such as Micron and NVIDIA to set up facilities in India.
Meanwhile, Vaishnaw also said that India’s growing strategic alliances with the US, European Union, Germany, Japan and South Korea are critical to securing semiconductor value chains, particularly for access to rare earth minerals.
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