Micron Technology, Inc. has announced plans to build a new assembly and test facility in Gujarat, India. Specifically, the new facility will enable assembly and test manufacturing for both DRAM and NAND products and address demand from domestic and international markets.

The company plans to begin phased construction of the new assembly and test facility in Gujarat. Phase 1, which will include 500,000 square feet of planned cleanroom space, will start to become operational in late 2024. Then, Micron will ramp capacity gradually over time in line with global demand trends. Further, Micron expects Phase 2 of the project, which would include the construction of a facility similar in scale to Phase 1, to start towards the second half of the decade.

Micron will invest up to US$825 million over the two phases of the project. Specifically, it will create up to 5,000 new direct Micron jobs and 15,000 community jobs over the next several years. Under the government’s “Modified Assembly, Testing, Marking and Packaging (ATMP) Scheme,” Specifically, Micron will receive 50% fiscal support for the total project cost from the Indian central government and incentives representing 20% of the total project cost from the state of Gujarat.

The combined investment by Micron and the two government entities over the course of both phases will be up to US$2.75 billion. Additionally, government support will help fund the project. Also, it will facilitate access to essential semiconductor infrastructure and resources to drive innovation and enhance local talent development.

“We are excited about the steps India is taking to develop the local semiconductor ecosystem,” said Micron President and CEO Sanjay Mehrotra. “I am grateful to the Indian government and all of the officials involved that made this investment possible. Our new assembly and test location in India will enable Micron to expand our global manufacturing base and better serve our customers in India and around the world.”

Generally, Micron’s plans are part of the company’s strategy to meet expected long-term demand for memory and storage across markets. They aim to complement the company’s global assembly and test network.

“Micron’s investment to set up assembly and test manufacturing in India will fundamentally transform India’s semiconductor landscape. It will generate tens of thousands of high-tech and construction jobs,” said Union Cabinet Minister for Railways, Communications, Electronics and IT Shri Ashwini Vaishnaw. “This investment will be a crucial building block in the country’s blossoming semiconductor ecosystem.”

Micron selected the state of Gujarat due to its manufacturing infrastructure. It also has a conducive business environment and a well-established talent pipeline in the SANAND Industrial Park (Gujarat Industrial Development Corporation – GIDC).

“After more than a year of discussions with Indian government officials, spearheaded by the India Semiconductor Mission and the state of Gujarat, Micron is pleased to bring its industry-leading assembly and test capabilities to be a part of this transformation in India’s semiconductor industry,” said Micron’s Senior Vice President of Global Assembly and Test Operations Gursharan Singh. 

Micron’s new facility will focus on transforming wafers into ball grid array (BGA) integrated circuit packages, memory modules, and solid-state drives.

Micron will build and operate the assembly and test facility in accordance with the company’s sustainability goals and in line with local and global environmental commitments. Micron is committed to designing and building the facility to meet or exceed Leadership in Energy and Environmental Design (LEED) Gold standards. Additionally, the facility will use advanced water-saving technologies to enable Zero Liquid Discharge.

Micron received one of the 2022 World’s Most Ethical Companies, awarded a Ecovadis Sustainability Platinum medal (top 1%). Also, the company was recognized as one of Newsweek America’s Most Responsible Companies. In India, Micron was a Silver winner of the India Workplace Equality Index (IWEI) 2022. It won the Data Engineering Award for Data Engineering Transformation. Moreover, it received two DivHERsity 2023 Awards (Top 20 Most Innovative Practices in Women Leadership and Development; Top 3 companies in the Electrical, Electronics and Semiconductor Industry).