Micron Technology, one of the world's largest semiconductor companies, has announced plans to build a new assembly and test facility in Gujarat with an investment of up to $825 million.

The new facility will create up to 5,000 new direct Micron jobs and 15,000 community jobs over the next several years, says the U.S.-based memory and storage solutions company.

Micron will begin phased construction of the new assembly and test facility in Gujarat in 2023. Phase 1, which will include 500,000 square feet of planned cleanroom space, will start to become operational in late 2024.

The company says it will ramp capacity gradually over time in line with global demand trends. The chipmaker expects Phase 2 of the project, which would include construction of a facility similar in scale to Phase 1, to start towards the second half of the decade.

Under the government's modified Assembly, Testing, Marking and Packaging (ATMP) Scheme, Micron says it will receive 50% fiscal support for the total project cost from the Indian central government and incentives representing 20% of the total project cost from the state of Gujarat. The combined investment by Micron and the two government entities over the course of both phases will be up to $2.75 billion.

Government support will help fund the project and facilitate access to essential semiconductor infrastructure and resources to drive innovation and enhance local talent development, the chipmaker says.

"We are excited about the steps India is taking to develop the local semiconductor ecosystem," says Micron President and CEO Sanjay Mehrotra. "I am grateful to the Indian government and all of the officials involved that made this investment possible. Our new assembly and test location in India will enable Micron to expand our global manufacturing base and better serve our customers in India and around the world."

Micron's plans are part of the company's strategy to meet expected long-term demand for memory and storage across markets and complement the company's global assembly and test network.

The new facility will enable assembly and test manufacturing for Micron's products and address demand from domestic and international markets, the chipmaker says.

"Micron's investment to set up assembly and test manufacturing in India will fundamentally transform India's semiconductor landscape and generate tens of thousands of high-tech and construction jobs," says Union Cabinet Minister for Railways, Communications, Electronics and IT Ashwini Vaishnaw.

"This investment will be a crucial building block in the country's blossoming semiconductor ecosystem," Vaishnaw adds.

Micron's new facility will focus on transforming wafers into ball grid array (BGA) integrated circuit packages, memory modules and solid-state drives. Micron says it will build and operate the assembly and test facility in accordance with the company's sustainability goals and in line with local and global environmental commitments.

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