Micron Plans Sharp Scale-Up at Sanand, India Chip Output to Reach Hundreds of Millions in 2027

5paisa Capital Ltd - 0 min read

Last Updated: 17th September 2026 - 02:54 pm

Micron Technology is preparing for a sharp increase in production at its semiconductor facility in Sanand, Gujarat, with the plant expected to process hundreds of millions of chips in 2027. 

The scale-up would follow production of tens of millions of chips in 2026, as the US memory-chip maker expands its assembly and testing operations in India. 

Commercial production at Sanand began earlier this year. Finished DRAM and NAND products are now being shipped from the facility to customers globally under the “Made in India” label. 

The plant is focused on assembly and testing rather than wafer fabrication. Advanced DRAM and NAND wafers produced through Micron’s global manufacturing network are brought to Sanand, where they are converted into finished memory and storage products. 

Micron’s first shipment of India-made memory modules from the facility went to Dell Technologies for laptops manufactured and sold in India. 

The Sanand project represents a combined investment of about $2.75 billion by Micron and its government partners. Once the first phase is fully ramped up, the facility will have more than 500,000 square feet of cleanroom space. 

The company’s existing output capacity at Sanand already exceeds the memory requirements of India’s laptop market, according to details shared at SEMICON India 2026 in New Delhi. 

Micron expands its India footprint 

Micron has been operating in India for seven years and directly employs more than 7,000 people. Its activities also support tens of thousands of additional jobs across the wider value chain. 

Its presence extends beyond manufacturing. Memory chips are designed by its teams in Bengaluru and Hyderabad, while assembly and testing take place in Gujarat before finished products are supplied to customers globally. 

Micron’s teams in India have contributed to more than 3,700 patents, inventions and disclosures. 

The expansion is taking place alongside growing demand for memory and storage used in artificial intelligence systems. Larger AI models require more memory capacity as well as faster, denser and more power-efficient products. 

Semiconductor manufacturing programme gathers pace 

Micron’s expansion is also part of India’s broader semiconductor manufacturing programme. 

The Union Cabinet approved Semicon 2.0 in July with an outlay of ₹1,27,500 crore. The programme covers areas including chip design, machinery and materials, fabrication plants, assembly and testing, research and development, and talent development. 

Under the first phase, 12 manufacturing projects involving investments of more than ₹1.64 lakh crore were approved. 

Micron, Kaynes Semicon and CG Semi have begun commercial production, while another approved unit is expected to start production during 2026. 

SEMICON India 2026 is being held in New Delhi from September 17 to 19. Against this backdrop, Micron’s Sanand facility is moving from its initial production stage towards a much larger operating scale, with output planned to rise from tens of millions of chips this year to hundreds of millions in 2027. 

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