US-based chip maker Micron has confirmed that it will set up a semiconductor assembly and test plant in Gujarat with a total investment of $2.75 billion (around ₹22,540 crore) with the claim of creating up to 5,000 new direct jobs and 15,000 community jobs in the future.

The company said on Thursday that it will invest up to $825 million in setting up the plant in two phases.

“Phased construction of the new assembly and test facility in Gujarat is expected to begin in 2023. Phase 1, which will include 500,000 sq ft of planned cleanroom space, will start to become operational in late 2024,” it said in a statement.

Also read: Micron nears $1 billion investment in India chip packaging plant

Centre’s support

Micron’s plant has been approved under the government’s Modified Assembly, Testing, Marking, and Packaging (ATMP) Scheme, under which it will receive 50 per cent support for the total project cost from the Centre and incentives representing 20 per cent of the total project cost from Gujarat.

The Cabinet had also approved the setting up of the plant, as approval was required for a production-linked incentive (PLI) of around ₹11,000 crore.

Commenting on the development, Rajeev Chandrasekhar, Minister of State for Electronics and IT, said, “This is a big milestone in India’s roadmap and growth as a Semiconductor Nation. In the last 18 months, after the announcement of the semiconductor vision by PM Narendra Modi and the planned investment of ₹76,000 crore to catalyse and build India’s Semicon Ecosystem, much progress has been made.”

“This is just the beginning, as there is more to come as India rapidly grows as a significant and trusted partner to global electronics and semiconductor value and supply chains,” he added.