Micron Technologies Aims to Make an $825 Million Investment to Establish Chip Factory in Gujarat
Micron Technology Inc (NASDAQ:MU), one of the world’s largest semiconductor companies, will invest up to $825 million to construct its inaugural assembly and test manufacturing facility in India. This investment will enable Micron to meet long-term memory and storage demand both domestically and abroad while supplementing its global assembly and test network. The project will be undertaken in phases; initial construction expected to commence by late 2024 with production set to commence shortly thereafter in phase two; both phases together expected to create up to 5,000 direct Micron jobs in India.
Micron President and CEO Sanjay Mehrotra noted that this new facility will expand Micron’s global manufacturing capabilities and better serve customers worldwide. He expressed enthusiasm over India’s efforts to develop its semiconductor ecosystem. The plant will primarily specialize in packaging chips into integrated circuit packages, memory modules, or solid state drives from wafers.
Micron’s decision to open its first manufacturing operation in Asia marks an important milestone both for Micron and for India as a nation. Not only will this facility generate economic benefits in India – such as providing thousands of high-quality jobs – but it will also reduce reliance on imported chips while supporting Make in India initiatives and supporting national goals.
According to Reuters, Indian central and state governments will offer significant financial support for Micron’s project. Alongside its initial investment of $800 million, Micron will receive $2.75 billion in production-linked incentives from the government – this investment plan was approved by Cabinet prior to Prime Minister Narendra Modi’s visit to the US this week highlighting its significance.
Micron selected Gujarat for its manufacturing operations due to the state’s established supply chain, advanced technology infrastructure and conducive business environment, as well as its talent pipeline at SANAND Industrial Park. Gujarat will support this project with tax incentives, infrastructure investments and workforce development investments; Micron will design its facility to meet their sustainability goals such as LEED Gold certification or Zero Liquid Discharge technologies.
Micron Technology’s commitment to creating products and services that promote world health and connectivity has earned them numerous accolades, such as being recognized as one of the 2022 World’s Most Ethical Companies by Ethisphere Magazine, Ecovadis Sustainability Platinum certification, Newsweek America’s Best Employers for Diversity award wining status and membership to UN Global Compact with policies aligning with its principles. For more information visit microntechnology.com>.