Micron Technology’s ambitious $2.75 billion semiconductor assembly and testing plant in Gujarat is set to begin production by the end of February, marking a landmark moment for India’s push to become a global semiconductor manufacturing hub. The facility, located in Sanand near Ahmedabad, is the first large-scale chip project to come onstream under India’s semiconductor mission and is being closely watched by industry and policymakers alike.
The plant will focus on assembly, testing, marking, and packaging (ATMP) of memory chips, a crucial segment of the semiconductor value chain. Once operational, it will produce DRAM and NAND products used in smartphones, data centres, automobiles, and consumer electronics. Officials say initial production will start at a calibrated scale, with capacity ramping up in phases over the next few years.
A Flagship Project for ‘Make in India’
Micron’s Gujarat facility is being developed with financial support from both the central government and the Gujarat government, reflecting a strong public–private partnership. Under the agreement, the Centre is providing up to 50% of the project cost, while Gujarat is offering additional incentives, including land, infrastructure support, and power subsidies.
The project has been positioned as a cornerstone of India’s Semicon India Programme, aimed at reducing dependence on imports and strengthening domestic electronics manufacturing. Until now, India has largely relied on overseas fabs for chips, making the country vulnerable to global supply chain disruptions.
“This is not just a Micron project; it is a signal to the world that India is ready to play a serious role in the semiconductor ecosystem,” a senior official said, adding that several global players are closely tracking the plant’s progress.
Employment and Ecosystem Impact
The Micron facility is expected to generate thousands of direct and indirect jobs, including highly skilled roles in engineering, operations, and quality control. Beyond employment, experts say the project will help catalyse a broader semiconductor ecosystem in Gujarat, attracting suppliers, logistics players, and ancillary industries.
Sanand has already emerged as a major manufacturing hub, hosting automobile and electronics plants. The addition of a semiconductor facility further strengthens Gujarat’s position as one of India’s most industrialised states.
Strategic Importance
The timing of the plant’s production start is significant, coming amid global efforts to diversify chip supply chains away from over-reliance on a few regions. For Micron, India offers both a growing market and a strategic manufacturing base. For India, the project represents a crucial step toward technological self-reliance in a sector critical to national security and economic growth.
Industry analysts note that while the plant is not a full-fledged chip fabrication unit, ATMP facilities are an essential foundation. “This is how ecosystems are built step by step,” an analyst said. “Once India proves reliability at this stage, more advanced investments will follow.”
Looking Ahead
With production slated to begin by February-end, attention will soon turn to execution, scale-up, and integration into global supply chains. If successful, Micron’s Gujarat plant could pave the way for more semiconductor investments, helping India inch closer to its ambition of becoming a trusted global electronics manufacturing destination.
