During Prime Minister Narendra Modi’s visit to the US in June, he met chip-making company MicronTechnology’s President and CEO Sanjay Mehrotra. At this meeting, the company announced its plans to build a new assembly and test facility in India. As promised, the US-based semiconductor manufacturer has laid the foundation for its Rs 22,500 crore ($2.75 billion) chip assembly and test facility.This new plant, which is located in Sanand, Gujarat, marks a historic move for India as the country takes another step towards establishing itself as a global chip manufacturing hub.
The facility, which is known as the Assembly, Test, Marking, and Packaging (ATMP) unit, will be built on 93 acres of land at the Sanand GIDC-II industrial estate. The computer storage chip manufacturer is set to begin construction of its semiconductor plant which is expected to start operations within 18 months.
The foundation ceremony was held in the presence of Union IT and Railways minister Ashwini Vaishnaw, Union MoS for Electronics and IT, Rajeev Chandrasekhar and Gujarat CM Bhupendra Patel among others.
In this factory, Micron will focus on transforming wafers into ball grid arrays (BGA). This includes integrated circuit packages, memory modules and solid-state drives.

The company has confirmed an initial investment of $875 million which will be used to build the plant in two phases. The rest of the investment is set to be supported by the state and central governments. This chip-making plant is expected to create around 5,000 direct jobs and 15,000 community job opportunities over the next five years.
What the government said about the plant
Chandrasekhar said: “The Micron groundbreaking ceremony is a beacon for the growth and evolution of the semiconductor ecosystem in India to other prospective investors in this sector. The facility marks the beginning of an exciting journey in India’s semiconductor ecosystem, in making India a semiconductor nation. The digital economy will contribute 20% to the gross domestic product. This ceremony is a big milestone in India’s journey.”
Gujarat CM Bhupendra Patel noted that the ceremony was taking place just three months after the MoU was signed. He said: “The fast progress is due to the proactive policies of the government. With this plant, the state will become a hub for semiconductor and chip manufacturing. It is the first step towards self-reliance in the semiconductor sector and the creation of over 20,000 jobs.”
Meanwhile, Vaishnaw mentioned that the PM has guaranteed to make India a hub for the semiconductor sector with this plant.