Gandhinagar: Memorandum of Understanding (MoU) was signed for setting up a semiconductor plant in Gujarat. The plant of assembly and testing of chips shall come up in Sanand near Ahmedabad. MoU was signed between the Government of Gujarat and the U.S.-based Micron company which is a pioneer in the manufacturing of memory chips.

Speaking on the occasion, Micron’s Gursharan Singh said the upcoming facility in GIDC Sannad will be a fully integrated one in which Wafers shall be in and finished DRAM and RAM products shall be out.

Speaking at the function, union minister Ashwini Vaishnav said – it’s a historic day for which the country waited for 40 years. Initial efforts for this were made in the 1980s, but they didn’t achieve success. Efforts were also made in the 1990s to bring in a well-known semiconductor company to India. In 2005-2006 also major attempts were made but they remained unsuccessful. Finally, it’s PM Narendra Modi who happens to make many important things happen, and it’s happening now.

Vaishnav said, for a country, industries such as the steel industry, plastic, and chemical industries are very important. Many other industries survive on these industries. The semiconductor industry is the same way important in today’s time. There’s no important thing nowadays that can be made without semiconductors. In a mobile phone, there are many chips. In fact, it’s a basic material for that. In cars, there are thousands of chips. In each train, 10,000 to 20,000 chips are fitted. You pick up any product and you find the requirement of a semiconductor in it. We import Rs. 3 lakh crore worth of chips in India. Out of that 1 lakh crore worth of chips are for memory that Micron manufactures. Micron is the fifth largest maker of that.

It’s a big step today in order to make India self-reliant in the field of memory chips, he said.

Vaishnav said, – when we went to PM for the presentation for the first time, the allotted time was one hour but it went on for 2.45 hours. The PM would ask questions on each point. Then the other presentation also happened. The PM would look at the presentation with minute details. 15 departments of the Government of India have coordinated and worked for this to make happen. It’s a complex process but it has been brought to a logical end and it is the identity of the current India. In the same way, various departments of Gujarat have also worked jointly.

The Advanced Pricing Agreement in this case was completed within five months. It would take years in many other countries. Currently pegged at 650 billion dollar worth, the industry of chips will go up to the level of 1 trillion dollars. India can take benefit of it. The industry will need 1 million talent. We are committed to developing 80,000 talents in semiconductor policy. Within one year 104 universities are roped in through tie-ups.

Talent, green energy, and lower cost are major strengths of manufacturing in India. I went to the U.S. and met with around 45 chip companies. All said in one voice that India is going to be the next hub of chips making. Against Rs. 140 cost of making chips in rich nations, the cost in India is just Rs 80.

Vaishnav also admired the Gujarat government for fast approvals and clearances to the project. He pointed out that the Chief Minister signed the documents in the time of the cyclone standing on his feet. In only six days, land allocation, project approval and MoU signing happened.

The Chief Minister speaking on this occasion stated that Gujarat will become the first state to make chips in India. It’s a matter of pride, he added. He further added that 5,000 direct and 15,000 indirect jobs will be created through the arrival of Micron in the State. The Chief Minister assured all cooperation for the project. DeshGujarat

A note by the Govt

The Government of India announced a USD 10 Billion Semicon India Program to catapult India on the global semiconductor chip manufacturing supply chain and fulfill the vision of Aatmanirbhar Bharat.

A significant investment in India by Micron Technology was announced by the President of the United States Joe Biden during his meeting with the Prime Minister in the US recently. This investment aims to boost India’s Semicon Program through the establishment of a semiconductor assembly, test, marking, and packaging (ATMP) facility in the country.

Micron Technology will invest USD 2.5 billion i.e. more than INR 22,500 crore to establish an ATMP facility in Gujarat’s Sanand.

An MoU was signed in this regard between the Government of Gujarat and Micron Technology- a leading name in global semiconductor manufacturing.

The MoU was signed in the presence of Chief Minister Shri Bhupendra Patel and Union Minister for Railways, Communications, Electronics and Information Technology, Shri Ashwini Vaishnaw. The MoU was signed between Shri Vijay Nehra, Secretary, Department of Science and Technology and Mr. Gursharan Singh, Senior Vice President, Micron Technology.

Micron has chosen Gujarat to set up its manufacturing facility considering Gujarat’s robust manufacturing infrastructure, business-friendly environment and availability of a well-planned talent pool along with excellent support from the state government.

It is to be noted here that Gujarat, under Chief Minister Bhupendra Patel, was the first state in India to announce a dedicated policy for the semiconductor sector.

The Gujarat Semiconductor Policy (2022-27) was launched in September 2022 for the development of a domestic semiconductor manufacturing ecosystem.

The state has also established a dedicated Gujarat State Electronics Mission (GSEM) under the Department of Science and Technology, to assist and attract global investors.

The establishment of this facility will prove to be a game-changer in India’s semiconductor manufacturing sector. It will provide 20,000 direct and indirect employment opportunities i.e. 5000 direct and 15,000 indirect.

This MoU is a watershed moment for India because the domestic semiconductor ecosystem will get a boost as other associated industries for raw materials and finished products related to this sector will be drawn to Gujarat.

The Gujarat Industrial Development Corporation (GIDC) has already developed more than 45,000 Ha of land for industrial use with plug-and-play facilities.

Micron has selected Sanand GIDC-II for its new ATMP facility. Sanand GIDC is a highly industrialized zone, home to many national and multinational manufacturing industries.

Vice Chairman and Managing Director, GIDC handed over the Offer Cum Allotment (OCA) letter to Micron for the allotment of 93 acres of area within the Sanand GIDC Estate.

Micron Technology will establish Assembly and Test facility, wherein it will focus on transforming wafers into ball grid array (BGA) integrated circuit packages, memory modules and solid-state drives.

Micron is committed to designing and building the facility to meet or exceed leadership in Energy and Environmental Design (LEED) Gold standards. Additionally, the facility will use advanced water-saving technologies to enable Zero Liquid Discharge (ZLD).

This facility will further attract many more players from the entire semiconductor supply chain into Gujarat. To add, it will also inspire global semiconductor giants and MNCs to set up high-tech manufacturing in Gujarat.

Chief Minister Shri Bhupendra Patel thanked Micron Technology for choosing Gujarat to set up its flagship facility in the semiconductor manufacturing sector. The Chief Minister assured the firm of the full cooperation and support of the State Government and wished them success.

Chief Principal Secretary to CM Shri K.Kailashnathan, Chief Secretary Shri Raj Kumar, senior officers and secretaries and office bearers from Micron Technology were present during the MoU signing.

About Micron Technology Inc.:

Micron Technology Inc. is America’s largest semiconductor memory IDM (Integrated Device Manufacturer) with expertise in cutting-edge memory storage solutions for mobile, PCs, data centers and High-Performance Computing (HPC). It is headquartered in Boise, Idaho and has a revenue of USD 30.8 billion (FY 2022). Micron has 11 Manufacturing sites across the US, Japan, Taiwan and China.

Innovation and research are the strength of Micron with over 52,000 registered patents and growing. Its 48,000-strong employee base is a pool of talented and passionate professionals from around the globe.

Key Accomplishments:

1. 5th Largest semiconductor company in the world

2. 127th on the 2022 Fortune 500 Companies

3. Recognised as one of the World’s Most Ethical Companies (2022)

4. Awarded an Ecovadis Sustainability Platinum medal (top 1%)

5. DivHERsity 2023 Award

6. 9 Sustainability & Operations Awards