Gujarat Govt To Sign MoU With Micron For Semiconductor Unit

The Gujarat government will be signing an MoU with American computer storage chipmaker Micron Technology on Wednesday. According to the state government information, the MoU is being signed for a semiconductor assembly and test facility at Sanand in Ahmedabad district.

The MoU (memorandum of understanding) will be signed in the evening in Gandhinagar in the presence of Gujarat Chief Minister Bhupendra Patel and other dignitaries, said a government release.

It may be noted that Micron had announced on 22 June that it will set up a semiconductor assembly and test plant in Gujarat entailing a total investment of USD 2.75 billion (around Rs 22,540 crore). Micron's plant has been approved under the central government's "Modified Assembly, Testing, Marking and Packaging (ATMP) Scheme".

According to the scheme, the US-based company will receive financial support comprising 50 per cent of the project cost from the Centre and incentives comprising 20 per cent of the project cost from the Gujarat government.

Micron had said in a statement earlier, “Phased construction of the new assembly and test facility in Gujarat is expected to begin 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 had said the plant will create up to 5,000 new direct jobs and 15,000 community jobs over the next several years.

"Micron's new facility will enable assembly and test manufacturing for both DRAM and NAND products and address demand from domestic and international markets," the statement said.