Micron Technology to start construction of $2.75 billion semiconductor plant in Sanand, Gujarat

Summarize with:

New Delhi: Micron Technology will be beginning construction on its semiconductor plant in Sanand, Gujarat, on Saturday, September 23. This development follows the chipmaking company’s announcement of its plans to establish a unit in India three months ago, with the plant anticipated to become operational by late 2024.

Micron Technology, a US-based company and the fifth-largest semiconductor manufacturer globally, has pledged to invest $825 million in India. The estimated cost of the plant is around $2.75 billion, with a substantial portion of the funding provided as a subsidy by both the Central and State governments, apart from Micron’s share. Notably, this project marks the first major endeavour approved under the Central government’s $10 billion incentive plan designed to attract global chip manufacturers.

Several months ago, Micron acquired a 10-acres of land, a building, and a factory from a troubled auto components manufacturer. This facility is currently undergoing conversion into a pilot assembly, testing, marking, and packaging (ATMP) plant.

The ATMP plant plays a critical role in the semiconductor production process as it converts silicon wafers into memory chips. It always features a “cleanroom” environment with minimal dust and vibrations, where wafers undergo approximately 30 to 40 processes, including etching. The finished chips are then sent to a back-end assembly and test facility before being packaged and made available for sale.

This represents the initial phase of Micron’s involvement in Sanand, which is pivotal for the company’s participation in India’s drive to excel in the field of technology-driven growth. In the subsequent phase, all testing operations will be conducted locally, and only the wafer production will be imported. This phase is scheduled to commence at the mega greenfield plant in December 2024.

Ashwini Vaishnaw, the Minister for Railways, Communications, Electronics, and Information Technology, informed that the government expects the first made-in-India chip to roll out on December 24.

The second phase of the project is located a kilometre away from the first. Micron has acquired an extensive 93-acre plot of land from the government for this purpose. It will house a greenfield ATMP plant, which is expected to take 18 months to construct and cost $2 billion. The Gujarat government has provided a 50% subsidy on the land’s cost.

At the core of Micron’s dual facilities in Sanand will be the cleanroom, spanning 1 million square feet, making it one of the world’s largest ATMP plant cleanrooms. This space must remain virtually free of dust to prevent the rejection of wafers by the machinery, adhering to a strict requirement of only 1,000 small particles per square meter, which is one-tenth of the standard for an operating theatre.

Despite its high level of automation, the project is anticipated to create a significant number of jobs, including 5,000 direct positions and 15,000 to 20,000 indirect ones, making it comparable to a passenger car factory.