The government aims to break ground for its first semiconductor assembly plant in August and start production of its first domestically manufactured semiconductor chip by the end of 2024, IT Minister Ashwini Vaishnaw said in an interview with the Financial Times. According to Vaishnaw Micron Technology would begin construction on a $2.75-billion chip assembly and test facility in Gujarat next month.
In June, US chipmaker Micron Technology announced its plans to invest $825 million in setting up a new assembly and test facility in Gujarat. This facility will cater to the assembly and test manufacturing needs of both DRAM and MAM products, serving the demand from domestic and international markets. The project is scheduled to commence Phase 1 operations by the end of 2024, with Phase 2 expected to begin by the end of the decade. Once operational, the Micron plant is estimated to create approximately 5,000 direct jobs and generate nearly 15,000 community jobs, as the official estimates.
Vaishnaw told FT, “Eighteen months is when we have targeted for [the first] production to come out of this factory — that is, December of ‘24.”
The government introduced the Semicon India Programme as part of the India Semiconductor Mission (ISM) in December 2021. The goal of the programme is to foster the development of a robust semiconductor and display manufacturing ecosystem in India. With a financial outlay of Rs 76,000 crore, the initiative aims to attract investments and promote technological advancements in the sector.
Taking industry feedback into account, the scheme was subsequently modified in September 2022 to enhance its competitiveness and was relaunched as the ‘Modified Semicon India Programme’. This demonstrates the government’s proactive approach to supporting the growth and competitiveness of India’s semiconductor industry.
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Vaishnaw told the UK based outlet that the government’s ISM is also doing “extensive work” to back support from other supply-chain partners, including suppliers of chemicals, gases and manufacturing equipment, alongside companies interested in setting up silicon wafer fabrication plants, “This is the fastest for any country to set up a new industry,” he added.
The Cabinet approved Micron’s facility proposal under the ‘Modified, Testing, Marking and Packaging (ATMP) Scheme’, with the government offering up to 50 per cent of the project cost as support. Additionally, the state government in Gujarat will provide incentives to Micron for establishing its assembly and testing facility in the state.