Micron Opens Major Semiconductor Plant in India
Micron Technology just inaugurated its advanced semiconductor assembly and testing (ATMP) facility in Gujarat, India. The move is a major step toward India's goal of chip self-reliance and deepens US-India collaboration on critical tech like AI. The opening ceremony was attended by Prime Minister Modi, signaling the project's national importance.
The total investment in the Sanand, Gujarat facility is a combined $2.75 billion. Micron is investing up to $825 million, supported by a 50% fiscal subsidy on the project cost from the Indian central government and a 20% incentive from the state of Gujarat. This plant will focus on assembly, testing, marking, and packaging (ATMP) for advanced DRAM and NAND semiconductor wafers. These finished memory and storage products are critical for the growing global demand driven by artificial intelligence and are used in data centers, smartphones, and other electronic devices. The project is expected to create a significant number of jobs in the region, with projections of 5,000 direct roles and an additional 15,000 indirect community jobs over the next several years. This initiative is a key part of India's strategy to develop a local semiconductor ecosystem and reduce reliance on imports. Construction on the facility began rapidly, in September 2023, following an MoU signed in June 2023. The plant has already commenced commercial production and completed its first shipment of India-made memory modules to Dell Technologies for use in laptops manufactured within the country. Once fully operational, the first phase of the plant will feature over 500,000 square feet of cleanroom space, making it one of the largest of its kind in the world. Micron anticipates assembling and testing tens of millions of chips at the Sanand facility in 2026, with a projected increase to hundreds of millions in 2027. This facility is the first to be approved under the comprehensive India Semiconductor Mission, a government initiative with an outlay of approximately $10 billion to attract global semiconductor companies. The program aims to establish India as a reliable hub in the global semiconductor supply chain, a move prompted by geopolitical shifts and a desire for supply chain diversification.
