US chipmaker Micron to invest up to $825M in India

ISTANBUL

American chipmaker Micron plans to invest up to $825 million in India to build a new assembly and test facility.

The facility in Gujarat, which aims to meet domestic and international demand, will enable assembly and test manufacturing for both DRAM and NAND products, two types of memory chips, according to a statement by the firm on Thursday.

The announcement came as Indian Prime Minister Narendra Modi, who is in the US on a three-day state visit, met President Joe Biden at the White House.

The construction of the new assembly and test facility is planned to begin this year, as its first phase is expected to become operational in late 2024.

"We are excited about the steps India is taking to develop the local semiconductor ecosystem," said Micron President and CEO Sanjay Mehrotra. "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."

Micron said it 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 $2.75 billion, it added.

"Micron’s investment to set up assembly and test manufacturing in India will fundamentally transform India’s semiconductor landscape and generate tens of thousands of high-tech and construction jobs," said Ashwini Vaishnaw, India's minister for railways, communications, electronics and IT. "This investment will be a crucial building block in the country’s blossoming semiconductor ecosystem."