Micron Braces For Semiconductor Assembly and Test Facility in India; To Invest Up To $825M

Micron Technology, Inc MU disclosed plans to build a new assembly and test facility in Gujarat, India. 

Micron's new facility will enable assembly and test manufacturing for DRAM and NAND products.

Phased construction of the new assembly and test facility in Gujarat is likely in 2023. Phase 1, which will include 500,000 square feet of planned cleanroom space, will start operating in late 2024, and Micron will ramp capacity gradually over time in line with global demand trends. 

Micron expects Phase 2 of the project, which would include constructing a facility similar in scale to Phase 1, to start towards the second half of the decade.

Micron's investment will be up to $825 million over the project's two phases and will create up to 5,000 new direct Micron jobs and 15,000 community jobs over the next several years. 

Under the government's "Modified Assembly, Testing, Marking, and Packaging (ATMP) Scheme," Micron will receive 50% fiscal support for the total project cost from the Indian central government and incentives representing 20% of the total project cost from the state of Gujarat. 

The combined investment by Micron and the two government entities over the course of both phases will be up to $2.75 billion. 

Government support will help fund the project and facilitate access to essential semiconductor infrastructure and resources to drive innovation and enhance local talent development.

Micron's new facility will focus on transforming wafers into ball grid array (BGA) integrated circuit packages, memory modules, and solid-state drives.

Price Action: MU shares traded lower by 0.46% at $65.50 premarket on the last check Thursday.