Micron to begin Commercial Production in India by Month-End
Micron Technology, a chipmaker based in the US, plans to start the commercial manufacturing of semiconductors at its Indian facility by the end of February, according to IT minister Ashwini Vaishnaw.
Vaishnaw told during the World Economic Forum (WEF) held in Davos. He also mentioned that pilot production has commenced at multiple authorized semiconductor facilities, with commercial production set to follow shortly.
Micron’s semiconductor facility in India is an assembly, testing, marking, and packaging (ATMP) plant being constructed in Sanand, Gujarat, following an agreement made in June 2023. The facility will rank among the largest back-end semiconductor sites globally, spanning almost 50 acres and specializing in transforming wafers into packaged chips, memory modules, and solid-state drives.
Construction commenced in mid-2023, and approximately 60 percent of Phase-1 tasks were finished by late 2024, with Tata Projects handling the construction. Micron is anticipated to receive the facility by December 2025, at which point the company will determine its operational and production schedules.
Micron’s initiative under the India Semiconductor Mission (ISM) entails a total investment of up to $2.75 billion, which includes financial incentives from both the Centre and the Gujarat government. Inc42 has contacted Micron Technology for their comments regarding the development. The narrative will be revised according to their feedback.
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"We have established a distinct trajectory, from 28-nanometer to 7-nanometer, to 3-nanometer, to 2-nanometer node. After sixty years of perseverance, this is ultimately yielding outcomes," he remarked.
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The government's initiative to support the nation's semiconductor sector started in 2021 through the Semicon India program, involving a pledge of INR 76,000 Cr. Under this program, IT Secretary S Krishnan revealed that INR 65,000 Cr was assigned for chip manufacturing, RS. 10,000 Cr for upgrading the Semiconductor Laboratory in Mohali, and RS. 1,000 Cr for the design-linked incentive initiative last August.
The global semiconductor market is expected to exceed $1.1 trillion by 2030, leading the country to heavily invest in local semiconductor companies through policies and incentives, while also inviting global chip manufacturers like Micron and NVIDIA to establish operations in India.
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Vaishnaw also mentioned that India's expanding strategic partnerships with the US, European Union, Germany, Japan, and South Korea are essential for ensuring semiconductor value chains, especially for acquiring rare earth minerals.