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Business / Wed, 01 May 2024 Business Standard

Micron Tech's India-made semiconductor chips set for global debut in 2025

The first India-made semiconductor chips will roll out from Micron Technology's packaging unit in Gujarat’s Sanand in the first half of 2025, Micron India Managing Director Anand Ramamoorthy told Mint in an interview. Ramamoorthy said the majority of the chips made in Sanand will be exported, potentially making the unit a key player in the global semiconductor market. Ramamoorthy said the chips would be used for data centres, smartphones, notebooks, and Internet of Things (IoT) devices. Micron is engaged in bringing its semiconductor supply chain to India, with key suppliers such as Simmtech beginning to set up operations in Gujarat. Ramamoorthy said the company is collaborating with the government and suppliers to leverage opportunities presented by India's semiconductor ecosystem.

The first India-made semiconductor chips will roll out from Micron Technology's packaging unit in Gujarat’s Sanand in the first half of 2025, Micron India Managing Director Anand Ramamoorthy told Mint in an interview.

"We expect to have products rollout early next year, in the first half, which is a very good turnaround given that we had announced this whole engagement in the middle of last year," Ramamoorthy said.

Ramamoorthy said the majority of the chips made in Sanand will be exported, potentially making the unit a key player in the global semiconductor market.

Ramamoorthy said the chips would be used for data centres, smartphones, notebooks, and Internet of Things (IoT) devices. However, the specific allocation of the chips will be determined closer to the final production stage, based on factors such as demand dynamics, pricing considerations, and customer requirements.

Micron is also eyeing new opportunities in emerging sectors such as two-wheeler electric vehicles and government contracts unique to the Indian market. Ramamoorthy hinted at potential partnerships with Tata Electronics' semiconductor fabrication units in Assam and Gujarat, citing existing collaborations with Tata Group companies and the possibility of expanding product lines into their factories, while speaking with Mint.

Micron is engaged in bringing its semiconductor supply chain to India, with key suppliers such as Simmtech beginning to set up operations in Gujarat. Ramamoorthy said the company is collaborating with the government and suppliers to leverage opportunities presented by India's semiconductor ecosystem.

ALSO READ: Micron set to get over $6 bn in chips' grants in announcement next week Under the government's $10 billion financial incentive scheme for semiconductor fabrication and assembly, Micron is establishing an assembly, testing, monitoring, and packaging (ATMP) plant in India. The project, supported by significant financial backing from central and state governments, is poised to generate thousands of direct and indirect employment opportunities, further bolstering India's semiconductor landscape.

Earlier this week, Bloomberg reported that Micron Technology may receive a $6.1 billion in grants from the United States' Commerce Department to bring semiconductor production back to the US. The company has reportedly pledged to open up to four factories in the New York state, and one in Idaho, however, has cited they would require a combination of Chips grants, investment tax credits and local incentives to make up cost differences between the US and overseas units.

The company has projects in China and Japan, along with India.

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