US memory chip firm Micron Technology on Wednesday signed a memorandum of understanding with the Indian government to build a semiconductor plant, its first factory in the country.
Micron said last week it will invest up to $825 million (nearly Rs. 6,850 crore) in the facility. With support from the Indian central government and the state of Gujarat, the total investment will be $2.75 billion (nearly Rs. 22,560 crore), it added.
The facility will be constructed in Sanand, near the city of Ahmedabad in Gujarat.
Of that total investment, 50 percent will come from the Indian central government and 20 percent from the state of Gujarat. It was earlier reported India’s Cabinet approved the project ahead of Prime Minister Narendra Modi’s state visit to the US, which kicked off on last Wednesday.
Micron said construction of the new facility in Gujarat is expected to begin in 2023 and the first phase of the project will be operational in late 2024. A second phase of the project is expected to start toward the second half of the decade, it said. The two phases together will create up to 5,000 new direct Micron jobs.
© Thomson Reuters 2023