Union IT and Telecom Minister Ashwini Vaishnaw said on Friday that India is creating a thorough ecosystem for the semiconductor sector including dollar-for-dollar incentives for expenditure incurred by participants. He said the announcements from AMD and Micron were very important for India.

Semiconductor giant, Micron Technology, plans to build a new assembly and test facility in Gujarat. The facility will enable assembly and test manufacturing for both Dynamic random-access memory (DRAM) and NAND products, and address demand from domestic and international markets.

Additionally, US semiconductor toolmaker Applied Materials plans to invest $400 million over the next four years in a state-of-the-art engineering centre in India. The decision comes after Indian Prime Minister Narendra Modi held discussions with Applied's CEO Gary Dickerson during their meeting in Washington on Wednesday.

The minister also mentioned that another announcement on semiconductor manufacturing can be expected in the next 12 months.

When the first plant comes, chemicals, gases, logistics, etc. needed for the semiconductor industry will be taken care of, he said.

Talking about the progress he added, “Land allocation has been practically done, the design for the plant is practically frozen, the construction agencies are getting finalised. So, we expect that within six quarters from now, the production should start."

He said Micron is the leading memory manufacturer in the world, so a series of products in the memory value chain will all be manufactured in India. "I wouldn't be able to put a number on which particular memory will be how much capacity, but overall when the plant ramps up to its full production, the revenue from the topline, the turnover from this plant will be of the order of a billion dollars per annum,” Vaishnaw said.

He also Foxconn and Vedanta had been asked to resubmit their proposal; they will be evaluated based on a fresh proposal.

First Published:Jun 23, 2023 10:39 AM IST