Micron's Investment Will Create 5,000 Direct Jobs In India: Rajeev Chandrasekhar

Micron will set up its semiconductor assembly and test plant in Gujarat entailing a total investment of $2.75 billion (around Rs 22,540 crore)

Rajeev Chandrasekhar said that after the announcement of the semiconductor vision by the prime minister much progress has been made in the last 18 months.

Union Minister of State for Electronics and IT Rajeev Chandrasekhar on Friday said computer storage chip maker Micron's investment will create 5,000 direct jobs in India. The minister, while speaking to news agency ANI, said that American companies' announcements will also help promote start-ups in in the country. “Micron's investment will create 5,000 direct jobs. It will crest 500 new high-end engineering jobs,” Chandrasekhar said.

Micron in a statement on Thursday said that the new facility will create up to 5,000 new direct jobs and 15,000 community jobs over the next several years.

#WATCH | Union Minister Rajeev Chandrasekhar speaks on the PM's invitation to American chip maker Micron Technology to boost semiconductor manufacturing in India. pic.twitter.com/IQMgbKKlvJ

— ANI (@ANI) June 23, 2023

Prime Minister Narendra Modi, who is on a state visit to the US, kicked off a semiconductor mission in December 2021 to establish India as one of the key partners in semiconductors. Chandrasekhar said that after the announcement of the semiconductor vision by the prime minister and the planned investment of Rs 76,000 crore to catalyse and build India’s Semicon Ecosystem, much progress has been made in the last 18 months.

“Since December 2021 substantial progress has been seen. Yesterday 2.8 billion US dollars package was approved for the mission. In the last 18 months, India has progressed significantly in the semiconductor industry,” said Chandrasekhar.

Micron will set up its semiconductor assembly and test plant in Gujarat entailing a total investment of $2.75 billion (around Rs 22,540 crore), the company announced on Thursday. The total cost of the plant comprises $825 million (around Rs 6,760 crore) from Micron and the rest from the government in two phases, according to a company statement.

“We are excited about the steps India is taking to develop the local semiconductor ecosystem,” Micron President and CEO Sanjay Mehrotra told the PTI. He said Micron's new assembly and test location in India will enable the company to expand its global manufacturing base and better serve customers in India and around the world.

Micron's plant has been approved under the government's “Modified Assembly, Testing, Marking and Packaging (ATMP) Scheme”. Under the scheme, Micron will receive 50 per cent fiscal support for the total project cost from the central government and incentives representing 20 per cent of the total project cost from the Gujarat.

The firm said, "Phased construction of the new assembly and test facility in Gujarat is expected to begin in 2023. Phase 1, which will include 500,000 square feet of planned cleanroom space, will become operational in late 2024.”