Micron Technology, Inc. is set to break ground on their new $2.75 billion semiconductor plant in Gujarat, making a significant milestone for India’s semiconductor industry. The project is receiving major financial support from government subsidies. With 70% of the total cost covered by the Union and State governments. This support is crucial for the industry’s global competitiveness in the future.
While establishing semiconductor manufacturing in India will be a gradual process, the Micron plant is expected to commence production by December 2024. The plant will play a key role in India’s dual approach to the semiconductor ecosystem, focusing on assembly design and engineering.
The government is actively facilitating collaborations between multinational companies and startups in India to foster intellectual property development for semiconductor technology. This Design-Linked Incentive scheme has approved seven applications, promoting innovation and registration of patents in India.
Additionally, attention is being given to the import licensing regime for IT hardware to ensure trusted sources. The government aims to increase the local production of hardware devices to fulfill 65-70% of the demand within the next four years.
Overall, the establishment of the Micron plant and the government’s initiatives signal a promising future for India’s semiconductor industry, with a focus on innovation, competitiveness, and self-sufficiency.