Modi visit to US: Micron Technology plans $2.75 billion investment

Micron’s plan of setting up plant for semiconductor fabrication and production will boost the Centre’s vision of making India a hub of semiconductor production in next 5 yrs

Micron Technology

New Delhi: The Micron Technology, an American semiconductor manufacturing company, has announced to set up a semiconductor test, assembly plant in Gujarat with a total investment of USD 2.75 billion.

The announcement was made when Indian Prime Minister Narendra Modi is in the visit to the United States. “Micron Technology is to invest USD 825 million in the semiconductor test, assembly plant while the rest of finance will come from the government,” the statement said.

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A senior official of the US administration said that Micron Technology with support from Indian National Semiconductor mission announced an investment of more than $800 million that together with additional financial support from the Indian authorities up to a $2.75 billion semiconductor assembly and test facility in India.

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Micron’s plant has been approved under the government’s “Modified Assembly, Testing, Marking and Packaging (ATMP) Scheme”. Under the scheme, Micron will receive 50% fiscal support for the total project cost from the Indian central government and incentives representing 20% of the total project cost from the state of Gujarat.

“Phased construction of the new assembly and test facility in Gujarat is expected to begin in 2023. Phase 1, which will include 500,000 square feet of planned clean room space, will start to become operational in late 2024,” Micron said in a statement, adding that Micron’s plant will create up to 5,000 new direct jobs and 15,000 community jobs over the next several years.

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A senior officer in the ministry of electronics and information technology said Micron’s plan of setting up plant for semiconductor fabrication or production will boost the Indian government’s vision of making the country a hub of semiconductor production in the next five years.

US chip maker company, Micron Technology, which was recently barred by the Chinese government from national projects over alleged national security risks, has become the most high profile name to commit investment in India to build a chip packaging plant. Other leading names including Applied Materials and Lam Research have announced that they will support research and training programs in the country.

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