Strengthening Indian Semiconductor Industry
Prominent American chip company Micron has committed to invest up to US$825 million to build a facility in India for the assembly and testing of semiconductor chips. It plans to open a production facility in Sanand, Gujarat in early 2025 for assembling and testing cutting-edge D-RAM and Nand products.
The establishment of Micron’s plant in Sanand is expected to trigger a transformation into a hub for cutting-edge semiconductor technology. This project is the first mega project approved under the Indian government’s US$ 10 billion incentive plan to attract global chipmakers. It reflects the country’s ambition to become a distinguished player in the semiconductor market.
Arun Venkataraman, Assistant Secretary of Commerce for Global Markets, Director General, US and Foreign Commercial Service, emphasized the importance of forming a conducive ecosystem and clear regulations to facilitate collaboration between startups in India and the US.
Venkataraman commended India’s Product Linked Incentive (PLI) schemes, pointing to Micron Technology’s US$ 825 million investment in establishing an assembly and test facility in Sanand, Gujarat. This investment signifies a remarkable step towards transforming Sanand into a high-tech semiconductor hub.
Recently, the Government of India approved the establishment of three new semiconductor manufacturing facilities, under the country’s flagship incentive program.