$ 825 Million from Micron, Giant Chip Investment in India!

US chipmaker Micron has announced that it will invest $825 million to build a semiconductor assembly and test facility in India. The company has accelerated its efforts to turn New Delhi into a chip manufacturing centre. Micron came to the agenda with the banning of its products in China in recent months. While the effects of this ban on security grounds continue, the chipmaker continues to work in other countries. The company will make a major investment to build a giant factory in India.

Also Read: Turbine Receives €5.5 Million Investment

The project is expected to cost a total of $2.75 billion

Micron said the project would cost $2.75 billion, with the central government paying half of the cost through production-related incentives. The state government of Gujarat in western India, where the production unit will be built, will pay 20 per cent of the project. Micron's new facility will enable assembly and test production for both DRAM and NAND [memory chip] products, the company said. It will also meet demand from local and international markets. Micron's new facility will focus on converting integrated circuit packages into memory modules and solid-state drives. As part of the first phase of investment, a 500,000 square metre facility will be operational in late 2024. Micron said it will build a similar-sized facility in the second phase, which will begin towards the "second half of the decade".

The political tension between India, Beijing and Washington continues to increase day by day. In addition to this tension, economic problems around the world are causing chip manufacturers to open up to new regions where they can produce at a more affordable cost. India wants to utilise this opportunity. The Modi government wants to take advantage of this change and turn India into a global manufacturing hub, which it considers very important to provide India with an economic income of $ 5 trillion.

The World Bank estimates that manufacturing will account for 14 per cent of India's gross domestic product in 2021, compared with 27 per cent for China. New Delhi aims to make India a hub for electronics manufacturing with a turnover of $400 billion by 2025. The government has approved $10 billion in incentives to encourage local semiconductor manufacturing in 2021. Eligible manufacturing projects will receive support of up to half the cost of setting up shop, which has prompted companies such as Tata Group and Indian mining giant Vedanta to step in. In addition to all these, the fact that Micron, which has problems with China, will establish a factory in India is expected to bring great returns to the country in every sense.