India is on the path to becoming a global semiconductor hub, as Micron Technology, Inc. (NASDAQ: MU), a leading semiconductor company, marked a significant milestone by breaking ground for its state-of-the-art chip assembly and test facility in Gujarat. This ambitious project is part of India’s strategic efforts to bolster its semiconductor ecosystem and meet the increasing demand for chips in the country.

Micron’s commitment to this endeavour involves investing approximately Rs 22,500 crore (equivalent to $2.75 billion USD) in building and operating this advanced semiconductor assembly and test facility. The Indian government is providing substantial support for this initiative, with 50% fiscal backing from the central government and additional incentives amounting to 20% of the total project cost from the state of Gujarat. Together, this combined investment by Micron and the two government entities will total up to $2.75 billion.

This groundbreaking initiative is expected to have far-reaching economic implications, generating approximately 5,000 direct employment opportunities within Micron and creating an additional 15,000 community jobs over the next five years. The assembly, test, marking, and packaging (ATMP) facility is being established on a sprawling 93-acre site within the Sanand GIDC-II industrial estate in Gujarat.

The facility’s focus will be on transforming semiconductor wafers into high-quality Ball Grid Array (BGA) integrated circuit packages, memory modules, and solid-state drives. The Assembly, Test, Marking, and Packaging (ATMP) operations are projected to commence within 18 months.

India’s Union IT Minister, Ashwini Vaishnaw, underscored the nation’s commitment to becoming a semiconductor powerhouse. He emphasized that India’s growing demand for chips, estimated to reach 5 lakh crore chips, necessitates such strategic partnerships. Within just three months of Prime Minister Narendra Modi’s meeting with Sanjay Mehrotra, President and CEO of Micron Technology, construction of the semiconductor facility is already underway, marking a significant milestone in India’s semiconductor journey.

Rajeev Chandrasekhar, Union Minister of State for Electronics and IT, hailed this development as historic and epic, emphasizing the progress made in the past decade. He expressed confidence that Micron’s cutting-edge plant would serve as an inspiration for other global investors and manufacturers in the semiconductor sector.

This project aligns with Micron’s commitment to sustainability, with the facility being designed to meet or exceed Leadership in Energy and Environmental Design (LEED) Gold standards. Additionally, the facility will incorporate advanced water-saving technologies to enable Zero Liquid Discharge.

Micron’s investment in India’s semiconductor landscape represents a significant step towards bolstering the nation’s technological capabilities, strengthening the economy, and addressing the burgeoning demand for semiconductor products both domestically and internationally. The semiconductor facility in Gujarat promises to play a pivotal role in India’s technological advancement and global competitiveness.