Micron invests $2.75 billion in Indian semiconductor plant

Rapid progress under India semiconductor mission

Micron Technology, a prominent American semiconductor manufacturer, has begun constructing a $2.75 billion semiconductor testing and assembly facility in Gujarat's Sanand. This marks a crucial step in India's quest to meet its semiconductor demand domestically and reduce imports.

The groundbreaking ceremony for this sprawling 93-acre plant occurred just three months after Prime Minister Narendra Modi signed a deal with Micron leadership during his visit to the US. This investment is the largest under the India Semiconductor Mission (ISM), which aims to bolster India's standing in semiconductor technology.

Boosting domestic production

Semiconductor chips are vital components found in electronic devices, including phones, laptops, vehicles, and medical equipment. Presently, India fulfills its $24 billion semiconductor demand solely through imports. However, Union Minister Ashwini Vaishnaw expressed optimism that India would soon meet its domestic demand and even begin exporting chips.

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The Micron project is expected to create 5,000 direct jobs with an additional 15,000 community jobs in the years to come. Moreover, Micron's entry into assembly, testing, marking, and packaging (ATMP) in India is likely to attract other companies interested in the semiconductor industry.

India semiconductor mission's vision

Launched by the central government in December 2021, the India Semiconductor Mission strives to position India as a significant player in semiconductor technology. The swift progress in establishing Micron's state-of-the-art facility exemplifies India's commitment to reducing its reliance on semiconductor imports and fostering a robust semiconductor industry that meets both domestic and international demands.

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