Micron to set up $2.75 billion India chip assembly facility

Applied Materials to invest $400 million to build engineering centre in Bengaluru

- Shouvik Das & Gulveen Aulakh

NEW DELHI: Micron Technology Inc. on Thursday said it will set up a $2.75-billion semiconductor testing and assembly facility in India, the first of its kind in the country. The move also marks the first approval under the government’s $10-billion incentive plan to encourage chip manufacturing.

The American chipmaker will set up an assembly, testing, and packaging facility for dynamic random access memory (DRAM) and Nand flash modules in India. The plant will be established in two phases, with the first phase involving the construction of a 500,000 sq ft assembly facility in Sanand, Gujarat, scheduled to begin later this year. The second phase is expected to be implemented in the second half of this decade.

Rival US semiconductor manufacturer Applied Materials has also announced a $400 million investment to build an engineering centre in Bengaluru. The investment will be spread over four years in the engineering centre, which will be used for developing and commercializing semiconductor manufacturing equipment.