Micron Technology, a leading US chip-maker, has entered into a significant agreement with the Gujarat government in India to build a state-of-the-art semiconductor manufacturing facility in Sanand, Gujarat. The deal, valued at $2.75 billion (approximately ₹22,500 crore), aims to bolster the chip production capabilities in the region and create a substantial number of employment opportunities. During the signing ceremony held in Gandhinagar, Micron Technology expressed its commitment to generate 5,000 direct jobs and an additional 15,000 indirect jobs through the establishment of this facility.
The semiconductor chips manufactured in Sanand will not only cater to the domestic market but also be exported globally. Micron anticipates the production of the first chip within 18 months from the commencement of operations. The event was graced by the presence of Bhupendra Patel, the Chief Minister of Gujarat, and Ashwini Vaishnaw, the Union Minister for Railways, Communications, Electronics, and Information Technology.
The Gujarat government handed over the Offer Cum Allotment (OCA) letter to Micron, designating 93 acres of land in the Sanand Gujarat Industrial Development Corporation (GIDC) Estate for the project. Micron Technology intends to establish an assembly and test facility at the site, focusing on the transformation of wafers into ball grid array (BGA) integrated circuit packages, memory modules, and solid-state drives. This facility is expected to attract numerous players from the semiconductor supply chain to invest in Gujarat, fostering the growth of the local industry.
Moreover, it is anticipated to encourage global semiconductor giants and multinational corporations to establish high-tech manufacturing units in the state. Last year, the Gujarat government introduced the “Gujarat Semiconductor Policy 2022-2027,” becoming the first state in India to implement a dedicated policy aimed at attracting investments in the chip manufacturing sector. The signing of the Memorandum of Understanding (MoU) between Micron Technology and the Gujarat government aligns with Prime Minister Narendra Modi’s ambitious $10 billion Semicon India Program, which aims to establish an Aatmanirbhar Bharat (self-reliant India) in the global semiconductor supply chain manufacturing.
This partnership marks a significant milestone in realizing PM Modi’s vision, as he recently met with Micron CEO Sanjay Mehrotra during his visit to the United States. The collaboration between Micron Technology and the Gujarat government not only strengthens India’s semiconductor capabilities but also positions Gujarat as a prominent hub for high-tech manufacturing in the country.