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SemicON: Modi launches Micron facility in Gujarat
ETtech | March 2, 2026 11:57 AM CST

Synopsis

The semiconductor assembly, testing, marking and packaging facility in the industrial hub of Sanand is the first of 10 projects under the India Semiconductor Mission (ISM) that has begun commercial production and shipment. It converts advanced DRAM (dynamic random access memory) and NAND (flash memory) wafers from Micron’s global manufacturing network into finished memory and storage products.

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India is ready, reliable and delivers, Prime Minister Narendra Modi told investors on Saturday at the inauguration of American memory chipmaker Micron Technology’s Rs 22,500-crore semiconductor facility in Gujarat.

The country, largely known for its information technology and allied services, is now strengthening its presence in hardware, too, Modi said.

The semiconductor assembly, testing, marking and packaging facility in the industrial hub of Sanand is the first of 10 projects under the India Semiconductor Mission (ISM) that has begun commercial production and shipment. It converts advanced DRAM (dynamic random access memory) and NAND (flash memory) wafers from Micron’s global manufacturing network into finished memory and storage products.


Once the first phase becomes fully operational, the facility will feature more than half-a-million square feet of cleanroom space.

As a result, it will be one of the largest single-floor dust-free assembly and test facilities in the world for semiconductors.

The company expects to assemble and test tens of millions of chips at Sanand in 2026, scaling to hundreds of millions in 2027, Micron said in a release.

As production increases, so will demand for these products, Modi said.

He underscored the demographic dividend that India possesses while also highlighting the market potential that the country offers for global companies. India has a large population that is becoming first-time users of products ranging from electronics to automobiles and the demand for these products will continue to rise, the PM said.

A prime example is in the electronics industry. “India is working towards having components to finished products (for electronics) made in India,” the PM said. “As electronics component manufacturing increases, domestic demand for semiconductors will increase as well. So, for those investing in India, the domestic market and the global opportunity are in front of them.”

The country is capable, competitive and is committed, he said, while assuring industry of complete support from the government.

Addressing people from within and outside India who are working in the semiconductor industry in Gujarat, he said the state would ensure that they get the facilities they might find lacking now.

“The lifestyle and social life you want and the way you want to lead your life, this is Gujarat, it will build it and give it to you. We will not let you feel like you’re lacking anything,” Modi said.

Micron Plant

India-US collaboration

Micron’s inauguration symbolises the strong collaboration and partnership between the US and India, especially in the fields of artificial intelligence and chips, Modi said.

“The entire world is striving to secure the supply chains for these two technologies, and the world’s two largest democracies are working towards this end,” Modi said. “The Pax Silica initiative between the US and India (launched) during the AI Summit is another step in this direction. Our combined efforts will make the global supply chain of essential minerals more secure and reliable.”

US ambassador to India Sergio Gor said the Micron facility represented American technology leadership working hand in hand with Indian manufacturing excellence.

“It represents supply chain resilience, built on trust between our two great democracies,” he said. “The chips packaged in this facility will power devices around the world. More importantly, the partnership this facility represents will power our shared prosperity and security for generations to come.”

American companies are watching closely, and many are eager to explore opportunities to do business in Gujarat, Gor said. President Donald Trump cared deeply about the relationship with India and the next three years of his administration will enable both nations to tap into the limitless potential that exists, he said.

6,000 employees in India

Micron Technology chief executive Sanjay Mehrotra said the Boise, Idaho-headquartered firm, which started its India journey in 2019 with R&D centres in Bengaluru and Hyderabad, now has 6,000 employees in the country, including in Sanand, with more than 300 researchers already holding patents. But beyond R&D, he said, India has become the powerhouse for the firm’s global operations from IT to supply chain and finance to manufacturing.

“Last week, many of us were at the AI Impact Summit in New Delhi,” Mehrotra said. “We heard a powerful vision from PM Modi, one that places humanity at the centre of AI. Because AI must not just serve a few, it must serve everyone,” he said. “Behind every breakthrough, there is something fundamental: data. There is no artificial intelligence without data, and there is no data without memory and storage. And the memory and storage that powers AI for everyone, that is what Micron builds.”

India will offer everything for chipmaking: Vaishnaw

India is striving towards having everything from equipment, chemicals and gases for this industry made in India, union minister for electronics and information technology Ashwini Vaishnaw said.

“Memory chips will be manufactured in this plant,” he said. “The semiconductor industry is foundational and everything from cameras to mobiles needs memory chips. (With this facility) India has made a place in the global semiconductor industry map.”

Gujarat Chief Minister Bhupendra Patel said the “large-scale” and “jet-speed” industrial transformation was possible due to the vision of the Prime Minister. “We believe that this cluster of Sanand will become the semiconductor hub of the world,” he said


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