To be built in the state of Gujarat, the new semiconductor testing plant of the American semiconductor manufacturer will also receive production-linked incentives worth INR110bn ($1.34bn) and is projected to generate nearly 5,000 jobs
Indian government approves Micron Technology's proposal to develop a $2.7bn semiconductor testing and packaging unit in the country. (Credit: Micron Technology, Inc.)
The Indian cabinet has reportedly cleared US-based semiconductor manufacturing company Micron Technology’s plans to develop a new $2.7bn semiconductor testing and packaging unit in the country.
To be built in the state of Gujarat, the new chip testing plant will also receive production-linked incentives worth INR110bn ($1.34bn), reported Reuters, citing a senior source from the Indian government.
The news agency stated that the approval for the semiconductor testing plant comes ahead of Indian Prime Minister Narendra Modi’s state visit to the US.
Furthermore, the publication, citing an Indian industry source with knowledge of the matter, reported that the assembly testing, marking, and packaging plant will be constructed in Sanand.
Micron Technology is expected to procure and package chips for customers at the plant and other companies can send their chips for testing prior to shipping.
The units will not manufacture semiconductor chips.
The industry source has been quoted by the publication that the Micron deal “helps the vision but not in a phenomenal way because still the major part of puzzle lies in setting India as a semiconductor base.”
According to various media outlets, the new chip testing plant in India is projected to generate nearly 5,000 jobs.
The American semiconductor manufacturer’s plan is in line with the White House’s insistence on US chip companies to invest in India, said Reuters citing US administration officials.
Besides, various discussions are going on about possible further investments in the country, wrote the publication.
In May 2023, Micron Technology announced an investment of up to JPY500bn ($3.5bn) in Japan over the next few years to manufacture next generation of its DRAM memory chip, the 1-gamma (1γ) node.
Through the investment, the company intended to introduce extreme ultraviolet (EUV) technology in Japan to manufacture its advanced chips.