In a big step towards boosting local manufacturing, the Government of India has approved chipmaker Micron’s proposal to set up a semiconductor unit in Gujarat under the recently eased Special Economic Zone (SEZ) norms. This move comes as part of the broader SEZ Reforms Boost aimed at attracting global tech investments. The company will invest INR 13,000 crore to build a facility for making chip components.
The Board of Approval under the Union Commerce Ministry gave clearance for this investment on 9 June. This marks one of the largest private investments in India’s electronics manufacturing sector, especially after the SEZ reforms were introduced by the central government.
Key Highlights of the Investment
- Project Location: Sanand Industrial Region, Gujarat
- Facility Purpose: Assembly, Testing, Marking, and Packaging (ATMP) of DRAM, NAND flash, SSDs, and memory modules
- Investment Value (Phase 1): INR 13,000 crore
- Expected Completion: First phase likely operational by the end of 2024
- Government Support: 50% funding from the Central Government under the Modified ATMP Scheme, and 20% additional support from the Gujarat Government
The project is part of Micron’s larger two-phase plan. Once both phases are completed, the total investment may reach approximately INR 22,500 crore, establishing a strong foundation for chip manufacturing in India.
The SEZ reforms played a major role in accelerating this project. The government recently reduced the minimum land area required for chip units and simplified net foreign exchange earning rules, making it easier for companies like Micron to invest.
SEZ Reforms Boost Employment and Ecosystem Growth
- Experts expect the plant to generate 5,000 direct jobs in Micron and 15,000 indirect jobs in the surrounding industrial ecosystem. This job creation is a direct outcome of the SEZ Reforms Boost, encouraging global tech investments.
- Micron is expected to attract component suppliers and service providers, boosting local manufacturing capacity. The SEZ reforms aim to build a complete semiconductor ecosystem around such anchor units.
- The project supports the Gujarat government’s semiconductor policy and aligns with the national goal of building an Aatmanirbhar Bharat in the electronics sector. It reflects how SEZ Reforms Boost is driving India’s vision for self-reliant tech infrastructure.
The Government of India’s dedicated semiconductor portal, www.ism.gov.in, provides further details about ongoing initiatives under the India Semiconductor Mission.
Summary
With SEZ norms relaxed, Micron’s INR 13,000 crore chip manufacturing unit in Gujarat gets a green signal. They expect the move to generate jobs, draw in suppliers, and strengthen India’s position in the global semiconductor industry.
