‘Significant, meaningful milestone’ Rajeev Chandrasekhar on announcements in tech space during PM Modi's US visit
3 min read 23 Jun 2023, 12:57 PM ISTMicron, Applied Materials and Lam Research have announced investments in India's semiconductor sector during PM Modi's US visit. Rajeev Chandrasekhar said the announcements by US companies would create an estimated minimum 80,000 direct jobs, as well as indirect employment in the supply chain.
PremiumWith big announcement by players like Micron, Applied Materials and Lam Research during Prime Minister Narendra Modi's US visit, Union Minister Rajeev Chandrasekhar has called it a significant and meaningful milestone in expansion of semiconductor ecosystem in India.
Speaking to reporters on Microns investment, he added that Micron's investment will create 5000 direct jobs and will crest 500 new high-end engineering jobs.
“PM kicked off a semiconductor mission in Dec 2021 to establish india as one of the key partners in semiconductors. Since Dec 2021 substantial progress has been seen. Yesterday 2.8 billion US dollars package was approved for the mission. In the last 18 months, India has progressed significantly in the semiconductor industry. American companies' announcements will also help promote startups in India," he said.
Speaking of the overall investments by the three companies, the minister said that announcements will create an estimated minimum 80,000 direct jobs, in addition to indirect jobs in supply chain. In a tweet earlier, Chandrasekhar termed the latest developments "big milestones" in India's roadmap and growth as a semiconductor nation, and said the world recognises India's rise as an economic and tech power.
Earlier on 22 June, Computer storage chip maker Micron said that it will set up its semiconductor assembly and test plant in Gujarat entailing a total investment of $2.75 billion (around ₹22,540 crore). The total cost of the plant comprises $825 million (around ₹6,760 crore) from Micron and the rest from the government in two phases, according to a company statement. US semiconductor toolmaker Applied Materials too said that it will invest $400 million over four years in a new engineering center in India.
“We are excited about the steps India is taking to develop the local semiconductor ecosystem," Micron President and CEO Sanjay Mehrotra said.
He said Micron's new assembly and test location in India will enable Micron to expand its global manufacturing base and better serve customers in India and around the world.
Micron's plant has been approved under the government's “Modified Assembly, Testing, Marking and Packaging (ATMP) Scheme".
Under the scheme, Micron will receive 50 per cent fiscal support for the total project cost from the Indian central 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, " Micron said in a statement. Micron will ramp capacity gradually over time in line with global demand trends. Micron said that it expects Phase 2 of the project, which would include the construction of a facility similar in scale to Phase 1, to start towards the second half of the decade. The company added that it will build and operate the assembly and test facility in accordance with the company's sustainability goals and in line with local and global environmental commitments.
(With inputs from agencies)
