American semiconductor company Micron Technology has announced its plans to build an assembly and test facility in the Gujarat state of India.
The company’s first factory in the country will see an investment of up to US$825 million (S$1.1 billion), expected to create over 5,000 direct jobs.
It will enable assembly and test manufacturing for both DRAM and NAND products that would both address domestic and international demand.
Micron’s senior vice president of global assembly and test operations, Gursharan Singh, said the announcement to establish the first assembly comes after over a year of discussions with Indian government officials, spearheaded by the India Semiconductor Mission and the state of Gujarat.
Micron said the focus will be on transforming wafers into ball grid array (BGA) integrated circuit packages, memory modules and solid-state drives.
According to Micron, construction of the factory will start later in 2023, and the first phase would be likely operational by late 2024.
The second phase of expansion was expected to start toward the second half of the decade, it said.
Micron will receive 50 percent fiscal support for the total project cost from the Indian central government and incentives representing 20 percent of the total project cost from the state of Gujarat.
This will be under the government's Modified Assembly, Testing, Marking and Packaging (ATMP) Scheme.
Micron said with support from the Centre and Gujarat govt, the total investment in the factory will be US$2.75 billion (S$3.7 billion).
According to the company, it selected Gujarat due to its manufacturing infrastructure, conducive business environment and talent pipeline in the SANAND Industrial Park (Gujarat Industrial Development Corporation – GIDC).
