Micron Technology to expand semiconductor operations in india with multiple facilities

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Micron Technology to expand semiconductor operations in india with multiple facilities

Micron Technology to expand semiconductor operations in india with multiple facilities

Industry News
Sep 18,23

Micron had pledged an investment of $800 million to establish a semiconductor assembly, testing, marking, and packaging (ATMP) unit in Sanand, Gujarat

Micron Technology to expand semiconductor operations in india with multiple facilities

Micron Technology Inc has announced plans to establish multiple semiconductor assembly and packaging facilities in India, in addition to its proposed fabrication unit, according to Rajeev Chandrasekhar, the minister of state for electronics and information technology. The US-based company is taking a long-term perspective on India as both a market and a manufacturing destination for semiconductors.

The minister mentioned that Micron's initial investment in India played a pivotal role in convincing other companies to consider the country seriously for their semiconductor assembly and manufacturing ventures. Therefore, it was in the government's interest to ensure the prompt operationalisation and functionality of Micron's first plant.

The minister stated in an interview last week that, according to Micron CEO Sanjay Mehrotra, if Micron's initial substantial investment succeeds, it will have two significant consequences. First, it will serve as an example for other companies and investments to follow, not only in Dholera but also in other locations. Second, those who choose to invest in India will recognise the potential for further expansion and increased scalability. The minister emphasised that this could be a viable growth roadmap, and the government fully supports this perspective.

The minister was referring to comments made by Micron's CEO, Sanjay Mehrotra, during the Semicon India 2023 event in July. He had stated that the semiconductor and packaging giant would embark on the next phase of its expansion in the latter half of the decade. Micron has pledged an investment of $800 million to establish a semiconductor assembly, testing, marking, and packaging (ATMP) unit in Sanand, Gujarat. Officials familiar with the company's plans have indicated that more such units will be established once the first one becomes operational.

According to the minister, "We have created the policy framework and attracted a global major that will commence with packaging and potentially venture into fabs in the next four to five years." He also mentioned that the government has been engaging with various entities in the semiconductor market. Notably, the level of engagement has significantly increased among those who were previously uninterested in India, and they are now actively participating in discussions.

Furthermore, the minister pointed out that fabs, including packaging units, tend to proliferate in areas where they are initially established, citing examples from countries like Malaysia and Japan, where ATMP hubs emerged following investments by single companies over the years. He emphasised that history shows that once a single facility is established, it often leads to the expansion of multiple factories and packaging units, forming large complexes.

The government is providing approximately $1.95 billion in financial assistance to Micron, bringing the total investment in the project to $2.75 billion. Construction of the facility is set to commence this year, with the first phase of the project expected to become operational by late 2024.

The government has publicly announced its expectations that the first semiconductor chip produced in India will be available by December 2024.

The second phase, slated to begin in the latter half of the decade, is projected to create up to 5,000 new direct jobs at Micron, in addition to those generated by the first phase.

Source: Mint