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 has approved this project ahead of Prime Minister Narendra Modi’s visit to America.

Micron said that with the cooperation of the Central Government and Gujarat Government, there will be a total investment of 2.75 billion dollars 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 this factory is likely to start this year and its first phase may start by the end of next year. Its second phase is likely to start after a few years. This project About 5,000 jobs will be available. Earlier this week, the central government had approved Micron’s plan for a new semiconductor testing and packaging unit. Because of the big incentives for this project, it needed approval from the Cabinet. The US government is encouraging chip manufacturing companies to invest in India. An industry source with knowledge of Micron’s project said that this factory will be set up in Sanand, Gujarat.

Last month, it was reported in a report that the Central Government has almost decided not to provide funds for the joint venture semiconductor plant of Vedanta and Taiwan’s Foxconn. This will setback the ambition of billionaire Anil Agarwal to create a Silicon Valley in the country.

Bloomberg report said that this joint venture will not get incentives to make 28 nanometer chips. The application submitted by this joint venture to obtain major funding from the government for the semiconductor plant does not meet the criteria set by the government. Technology partner is being searched for this project. Anil Aggarwal’s Vedanta, which is involved in metals and mining, has a heavy debt burden. In September last year, Vedanta and Foxconn had announced an investment of $ 19.5 billion to set up a semiconductor and display unit plant in Gujarat.