Construction of Micron's chip factory to begin in 4-6 weeks: Vaishnaw

The groundbreaking ceremony on Micron Technology's semiconductor factory will take place in four to six weeks, said Union Minister Ashwini Vaishnaw on Monday.

Speaking at the launch of the Bharat 6G Alliance in New Delhi, Vaishnaw said that land had already been allocated for the factory in Gujarat.

"A lot of progress has been made on that project. The site allocation has been done by the government of Gujarat... And now, the company is preparing to set up the factory," Vaishnaw said.

"The groundbreaking ceremony should take place within the next four to six weeks", he said, adding that the "first Make in India chip" should be manufactured out of this factory by December 2024.

On June 28, US chipmaker Micron signed an agreement with the Indian government to build a semiconductor plant. While Micron has stated that it will invest up to $825 million in the facility, the total investment -- including that of the Indian government -- will be $2.75 billion. The factory is being built in Sanand, Gujarat.

Earlier on June 22, Micron had announced that it will invest $2.75 billion (around Rs 22,540 crore) to build a semiconductor assembly and testing plant in Gujarat.

The Micron facility has been approved by the Centre's "Modified Assembly, Testing, Marking, and Packaging (ATMP) Scheme."

Under the scheme, the US-based firm will receive 50 per cent fiscal support for the total project cost from the Centre and 20 per cent fiscal support from the Gujarat government.

"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 start to become operational in late 2024," Micron had said in a statement earlier.

The company had also stated that the plant will generate up to 5,000 new direct jobs and 15,000 new community jobs over the next several years.

"Micron's new facility will enable assembly and test manufacturing for both DRAM and NAND products and address demand from domestic and international markets," the statement added.