American semiconductor giant Micron Technology announced it plans to invest in a $2.7 billion assembly and test plant in Gujarat. The announcement came after the Thursday meeting between PM Narendra Modi and Micron CEO Sanjay Mehrotra. 

The facility will enable assembly and test manufacturing for Dynamic random-access memory (DRAM) and NAND products and address demand from domestic and international markets. The facility is expected to create up to 5,000 new direct Micron jobs and 15,000 community jobs over the next several years.

The total cost of the upcoming plant — India’s first significant semiconductor investment — is $2.75 billion. The Boise-based chip maker will invest up to $825 million or Rs 6,760 crore, amounting to 30% of the total cost of the Indian semiconductor facility.  

The plant has been approved for the government’s Modified Assembly, Testing, Marking and Packaging (ATMP) Scheme, under which, Micron will receive 50% fiscal support for the total project cost from the Indian government and incentives representing 20% of the total project cost from the state of Gujarat.

Micron said that the phased construction of the new assembly and test facility is expected to commence in 2023. Phase 1 will include 500,000 square feet of planned cleanroom space, which will become operational in late 2024. Phase 2 of the project will involve constructing a facility similar in scale to Phase 1 and begin by the second half of the decade.