India is now ready to enter big leagues of semicon manufacturing, Minister

The quick approvals for Micron’s semiconductor packaging plant in Gujarat that led to the facility’s groundbreaking ceremony on September 23 show that India is now able to smoothly go from vision to execution and has given the government a playbook to set up chip manufacturing facilities, according to Union Minister Rajeev Chandrasekhar.

“It has taught both the Government of India and state government of Gujarat what is the playbook…Everyone learns new things the first time something happens and the process will only become smoother the next time,” the Minister of State for Electronics and Information Technology told reporters.

“This factory will be a testimony to the fact that PM Modi had a vision and a plan and, in 15 months, we have come such a distance. It will have a cascading effect on other semiconductor investors and manufacturers,” he added.

He further said, “It’s almost like a lighthouse that says India is now ready to enter the big leagues of semiconductor manufacturing.”

Chipmaking major Micron held a groundbreaking ceremony at the Sanand industrial area of Gujarat on September 23 to flag off the construction of the first phase of a $2.75 billion semiconductor packaging facility.

At the ceremony, Micron signed a contract with Tata Projects for the plant’s construction and Union Minister for Electronics and Information Technology Ashwini Vaishnaw announced a world-class train between the industrial hub of Sanand and the state’s financial nerve centre Ahmedabad.

The total cost of the plant comprises $825 million (around Rs 6,760 crore) from Micron and the rest from the government in two phases.

Under the scheme, Micron will receive 50 per cent fiscal support for the total project cost from the Union government and incentives representing 20 per cent of the total project cost from the state of Gujarat.

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 become operational in late 2024.

The plant is being supported by the government’s Rs 76,000 crore capex-linked incentive scheme to catalyse and build India’s semiconductor ecosystem. Moneycontrol