Micron to Set Up Chip Factory in Gujarat, Company Will Get Financial Support from Government

American memory chip company Micron Technology has said that it will invest $825 million in setting up a chip assembly and testing factory in Gujarat. This will be the company’s first factory in the country. Earlier this week, it was reported that the Union Cabinet had approved the project ahead of Prime Minister Narendra Modi’s visit to the US.

Micron told that with the cooperation of the Central Government and the Government of Gujarat, there will be a total investment of $ 2.75 billion in this factory. Out of this, 50 percent will be received from the Central Government and 20 percent from the Gujarat Government. The construction of the factory is likely to begin this year and the first phase could start by the end of next year. Its second phase is likely to start after a few years. This project Will get about 5,000 jobs. Earlier this week, the central government approved Micron’s plans for a new semiconductor testing and packaging unit. Due to the huge incentive for this project, it needed approval from the cabinet. The US government is encouraging chip-making companies to invest in India. An industry source with knowledge of Micron’s project said that the factory would be set up in Sanand, Gujarat.

Last month, it was told in a report that the central government has approved the joint venture of Vedanta and Taiwan’s Foxconn. semiconductor We have almost decided not to provide funds for the plant. This will deal a blow to Billionaire Anil Agarwal’s ambition of making Silicon Valley in the country.

It was said in the Bloomberg report that this joint venture will not get incentives for making 28 nanometer chips. The application submitted by this joint venture to get major funding from the government for the semiconductor plant does not meet the criteria set by the government. A technology partner is being sought for this project. Anil Agarwal’s Vedanta, associated with metals and mining, has a heavy debt burden. In September last year, Vedanta and Foxconn had announced an investment of $19.5 billion in setting up a semiconductor and display unit plant in Gujarat.