Micron Confirms Up to US$ 825M Investment in India's Chip Facility

Micron Confirms Up to US$ 825M Investment in India
Micron Confirms Up to US$ 825M Investment in India

by Tanushree Jaiswal Last Updated: Jun 26, 2023 - 12:07 pm 779 Views

American chip maker Micron Technology recently announced its plan to invest around $825M in a new chip assembly and test facility in India. This facility will be located in Gujarat and will be Micron's first factory in the country. With support from the Indian government and the state of Gujarat, the total investment in the factory is expected to reach approximately $2.75 billion. 

The facility will cost $2.75 billion — Micron will invest $825 million, 50 percent will come from the Central government, and 20 percent from the Gujarat government.

India has been actively working to attract electronics and semiconductor manufacturing investments and has implemented a scheme called Production-Linked Incentive (PLI) to promote the sector. The Indian semiconductor market was valued at $27.2 billion in 2021 and is forecasted to grow at a rate of nearly 19%, reaching $64B by 2026.

Micron is a global leader in memory and storage solutions, serving various industries such as data centers, smartphones, PCs, and artificial intelligence applications. While India has not yet produced its own chips locally, Micron's investment will contribute to the development of the semiconductor industry in the country. 

The facility in Gujarat will primarily focus on packaging chips, which involve transforming wafers into integrated circuit packages, memory modules, and solid-state drives.

The construction of the new facility is scheduled to commence in 2023, and the first phase is projected to become operational by late 2024. A second phase is anticipated to start in the second half of the decade. 

Together, these phases are estimated to create up to 5,000 new direct jobs at Micron. This investment by Micron demonstrates the company's commitment to expanding its presence in India and taking advantage of the country's growing semiconductor market.

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About the Author

Tanushree is a seasoned professional with 6 years of experience in the Fintech and Edtech industry.


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