The Indian government and the US memory chip company Micron Technology inked a memorandum of understanding on Wednesday to develop a semiconductor plant, the company’s first unit there.
Last week, Micron said that it would invest as much as $825 million (or around Rs. 6,850 crore) in the facility. The overall investment, with help from Gujarat and the Indian federal government, will be close to $2.75 billion (about Rs. 22,560 crore), it was claimed.
The central government of India will provide 50% of the overall investment, and the state of Gujarat will contribute 20%. The proposal was reportedly authorised by the Indian Cabinet prior to Prime Minister Narendra Modi’s official visit, which began last Wednesday.
According to Micron, work on the new plant in Gujarat is scheduled to start in 2023, with the first phase of the project likely to be completed by the end of 2024. According to the report, the project’s second phase is anticipated to begin in the second half of this decade. Up to 5,000 new direct Micron jobs will be created by the two stages taken together.
This project will provide a maor stimulus to India’s efforts to become a top destination for semiconductor manufacturing. It would also encourage other semiconductor manufacturers to set up units in India. As firms look to diversify and move out of China, it is imperative for India to continue with efforts to project itself as a lucrative alternative to China.
