US based chipmaker Micron Technology, Inc. carried out the groundbreaking of its $2.75 billion assembly, testing and packaging plant (ATMP) in Sanand, Gujarat, on Saturday.
The event took place at Gujarat Industrial Development Corporation’s (GIDC) industrial estate in Sanand where the company has been allotted 93 acres of land for the project.
“The company is poised to begin construction in a record-breaking timeframe of less than three months after signing the MoU,” Gujarat chief minister Bhupendra Patel said while speaking at the event.
The project marks the largest investment under the India Semiconductor Mission (ISM).
The groundbreaking event is a direct outcome of Prime Minister Narendra Modi’s recent visit to the United States in June, which took place upon the invitation of US President Joe Biden.
Speaking to reporters in Delhi on Thursday, Union minister of state for entrepreneurship, skill development, electronics & technology, Rajeev Chandrasekhar said, “In January 2022, PM Modi laid out his vision for India in the global semiconductor ecosystem. He wanted India to rapidly catch up after decades of our country having missed opportunities and failed to make a mark in semiconductors.”
He added that within 15 months, India was witnessing one of the largest names in the world of semiconductors – Micron of the US- setting up its first plant in Gujarat.
“It tells you that in such a short time, in 15 months’ time, India has moved from the old narrative of why invest in India for semiconductors to why are we not investing in India for semiconductors,” said Chandrashekhar.
Tata Projects on Saturday announced its collaboration with Micron Technology to construct an advanced semiconductor assembly and test plant in Sanand and said it will roll out semiconductor chips next year.
The contract awarded to Tata Projects solidifies the company’s proficiency in large-scale, sustainable infrastructure development in the Indian manufacturing landscape, it said in a statement.
“This enduring project is a significant milestone and the largest investment under the India Semiconductor Mission (ISM). The construction of Phase 1 will include a 500,000 square feet clean room space, scheduled to be operational by late 2024,” said the statement.
Vinayak Pai, managing director and chief executive officer (MD & CEO), Tata Projects, said, “We are thrilled to embark on this significant journey with Micron Technology, an industry leader in innovative memory and storage solutions. This collaboration exemplifies the unwavering commitment of Tata Projects to advancing technology, promoting sustainable development, and contributing considerably to ‘Make in India’ initiative. Through this classic venture, we are not just building a state-of-the-art semiconductor assembly and test plant; we are laying the foundation for India’s technological prowess on the global stage.”
On June 28, Micron Technology had inked a pact with the Gujarat government for setting up a semiconductor manufacturing facility in the state.
“We’re excited to break ground on Micron’s new assembly and test facility here in GIDC, Sanand, Ahmedabad, India, and lead this transformation in India’s semiconductor industry,” said Micron’s senior vice president of Global Assembly and Test Operations Gursharan Singh.
At the MoU signing event in Gandhinagar, the company had said in a presentation that it will create 5,000 direct and 15,000 indirect jobs. The semiconductor chips produced in Sanand will be used across India and exported globally. The first chip from this plant is expected within 18 months, it said.
The Gujarat government handed over the Offer Cum Allotment (OCA) letter to Micron for the allotment of 93 acres of area at Sanand GIDC Estate.
Micron Technology will establish Assembly and Test facility, wherein it will focus on transforming wafers into ball grid array (BGA) integrated circuit packages, memory modules and solid-state drives.
Micron is likely to draw more global semiconductor leaders and multinational corporations (MNCs) to initiate advanced manufacturing operations within the state of Gujarat. Also, it is anticipated that this facility will serve as a catalyst, drawing numerous participants from the complete semiconductor supply chain to establish their presence in Gujarat.
The Gujarat government announced the “Gujarat Semiconductor Policy 2022-2027” in July last year, making it the first state in India to introduce a dedicated policy aimed at attracting investments in the chip manufacturing sector.
The state has also established a dedicated Gujarat State Electronics Mission (GSEM) under the Department of Science and Technology, to assist and attract global investors.
The investment by Micron is a novel step towards PM Modi’s USD 10 billion Semicon India Program to create an Aatmanirbhar Bharat in global semiconductor supply chain manufacturing.
From automobiles to mobile phones and railways to defence, semiconductor chips function as the heart of modern-day products. The size of global semiconductor industry is 650 billion dollars ( ₹53 lakh crore) and it is projected to increase up to 1 trillion dollars ( ₹82 lakh crore) by 2030.
“India, under the leadership of Prime Minister Modi is rapidly emerging as a major hub for electronics manufacturing, with the sector crossing ₹8.25 lakh crore ($110 billion) last year and providing over 25 lakh (2.5 million) jobs. Notably, mobile manufacturing alone accounted for over Rs. 3.5 lakh crore ($47 billion),” said a media release by the Gujarat government on June 28.
During PM Modi’s US visit earlier this year, three semiconductor companies have firmed up their plans to invest in India. Besides Micron, Applied Materials, a leading semiconductor equipment company is expected to invest USD 400 million dollars to build a collaborative engineering centre in India while Lam Research, another leading semiconductor company has announced that it will train 60,000 Indian engineers using its cutting-edge semi-verse technology, according to officials.