The First Chip Assembly Plant In India Is Being Built By Micron, And Tata Has Been Enlisted For A $2.75 Billion Project In Gujarat
The first such factory in India was started on Saturday by US memory chip manufacturer Micron Technology, and it is anticipated to boost the nation’s chip manufacturing aspirations.
In Sanand town, close to Ahmedabad, Micron has chosen Tata Projects to construct the semiconductor assembly and test facility. Both parties signed a formal agreement on Saturday during the groundbreaking ceremony. Micron also announced that the hiring process for the new plant has started.
The factory will be built out in two stages. A 5,000 square foot clean room will be a part of phase one and is expected to be operational by the end of 2024. The projected cost of the first phase of development was put at Rs 4,000 crore by sources with knowledge of the deal.
In addition to handling the construction, Tata Projects will also be in charge of a few plant operations, such as locating the machinery needed to package chips.
The manufacturing plant would be constructed for a total of $2.75 billion, with Micron contributing $825 million. It was revealed during Prime Minister Narendra Modi’s visit to the US this year.
According to its strategy of providing incentives for the fabrication of semiconductors, the Union government will pay around 50% of the cost. Additionally, the state of Gujarat will provide about 20% in the form of relief to the enterprise.
We anticipate finishing up our new 1.4 million square foot facility, which includes a 5,000 square foot clean room, by the end of 2024. The plant should be operating by then, according to Gursharan Singh, senior vice-president of Micron Technology.
Over the course of the project’s two phases, Micron will invest $825 million. As a result, we will add 5,000 new direct employment here in Sanand and 15,000 new community jobs.