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Launch · Professional & Local Services

Micron to start commercial chip production in India

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Date
Company
Micron Technology
What it does
Memory and storage chip maker
Kind
Launch
Amount
$2.75 Bn
Based in
Sanand
Sector
Professional & Local Services

What they do

Commercial production at its Sanand, Gujarat plant begins end of February, with $2.75 Bn investment

What happened

The plant is among the largest back-end semiconductor facilities globally, nearly 50 acres

Why it matters

Pilot production has begun at several approved semiconductor facilities in India

The details

  • Micron will start commercial chip production at its Sanand, Gujarat facility at the end of February.
  • The plant is an assembly, testing, marking and packaging (ATMP) unit, turning wafers into packaged chips, memory modules, and solid-state drives.
  • Pilot production has already begun at several approved semiconductor facilities.
  • The deal for the plant was signed in June 2023, with construction starting in mid-2023.
  • Phase-1 completion was roughly 60% by late 2024, and the facility handover to Micron is expected by December 2025.
  • Tata Projects is the build contractor for the facility.
  • The total investment is up to $2.75 Bn, including fiscal incentives from the Centre and Gujarat government.
  • The India Semiconductor Mission (ISM) is involved in the project.

The bigger picture

  • The government's semiconductor push began in 2021 with the Semicon India programme, committing INR 76,000 Cr.
  • The allocation includes INR 65,000 Cr for chip production, INR 10,000 Cr for Semiconductor Laboratory modernisation in Mohali, and INR 1,000 Cr for a design-linked incentive scheme.
  • The global semiconductor market is projected to cross $1.1 Tn by 2030.
  • India's strategic alliances with the US, EU, Germany, Japan, and South Korea are critical for semiconductor value chains and rare earth minerals access.

About the business

  • Micron is a global memory and storage chip maker.
  • The Sanand plant is one of the largest back-end semiconductor facilities globally, nearly 50 acres.
  • The plant performs assembly, testing, marking and packaging (ATMP) of chips.
  • It converts wafers into packaged chips, memory modules, and solid-state drives.
  • The facility is located in Sanand, Gujarat, India.
  • The project involves fiscal incentives from both the central and Gujarat state governments.

What happens next

  • Commercial chip production is set to begin at the end of February.
  • The facility handover to Micron is expected by December 2025.

The deal

Type
launch

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