Work going full steam for India's first semiconductor unit in Gujarat, Ashwini Vaishanaw gives latest update

New Delhi: American chip maker Micron's high-end semiconductor fabrication plant at Gujarat's Sanand, which is India's first, is coming into reality at a rapid pace.
Speaking at the Republic TV Summit 2024 on Thursday, Union Information and Technology Minister Ashwini Vaishnaw gave a presentation about the progress of the ambitious project ever since the signing of the agreement with the American chipmaker in 2023.
In June 2023, Prime Minister Narendra Modi signed the agreement with US President Joe Biden for the Micron plant right after the prime minister's state visit to the US.
"Mark the dates, June 2023 is when the agreement gets signed and the proposal gets approved and September 2023 is when the ground breaking happens. How many days? Less than 100 days," Ashwini Vaishnaw said in his presentation, sharing three different images of the signing ceremony, ground breaking event, and current status on ground.
In the pictures, the construction work is clearly visible.
"Would you believe this is the level of construction by December 2023. That's the pace at which the Prime Minister Modi'jis resolve for Viksit Bharat is working on the ground," he said, making a point that his government is always on time in implementing projects.
He informed that close to 5,000 people are working to construct the Micron plant at Gujarat's Sanand. It is expected to be operational in late 2024.
Micron had earlier said it will ramp capacity gradually over time in line with global demand trends. Micron expects Phase 2 of the project, which would include the construction of a facility similar in scale to Phase 1, to start towards the second half of the decade.
Micron Technology is investing USD 2.5 billion (INR 22,500 crore) to establish an ATMP (assembly, test, marking, and packaging) facility in Gujarat's Sanand GIDC-II. Sanand GIDC is a highly industrialized zone in Gujarat, home to many national and multinational manufacturing industries.
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.
The Gujarat government had assured the firm of full cooperation and support. 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.
Chip plant at Sanand 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.
As recently as February 29, the Union Cabinet chaired by Prime Minister Narendra Modi approved the establishment of three more semiconductor units under 'Development of Semiconductors and Display Manufacturing Ecosystems in India. All three units - two in Gujarat and one in Assam -- will start construction within next 100 days.
The Programme for Development of Semiconductors and Display Manufacturing Ecosystem in India was notified on 21.12.2021 with a total outlay of Rs. 76,000 crore.