US memory manufacturer Micron will be constructing a new chip manufacturing plant in India, with a total investment of US$2.75 billion. The Indian central government will cover 50 percent of the project costs, providing $1.375 billion, while the Indian state of Gujarat is offering an additional incentive of 20 percent of the cost, amounting to $550 million. Micron’s own investments will reach $825 million. The plant will produce DRAM and NAND flash memory chips, as well as memory modules and solid-state drives, using semiconductor wafers produced elsewhere. These products will be tested on site. The first phase of the project will involve the construction of a 46,450 square meter clean room, set to begin this year. The factory is expected to be operational by the end of 2024, with Micron planning to expand capacity based on global demand. Micron CEO Sanjay Mehrotra met with Indian Prime Minister Narendra Modi during his US visit, where he was invited to set up new plants in India. The decision to establish the factory in India aligns with both countries’ goals of reducing their dependency on China and building a chip supply chain. Micron also aims to decrease its reliance on China, following the ban of Micron memory as a security risk. However, the ban does not require replacement of memory, but rather prohibits official sources from selling it. The impact on Micron’s sales in China is relatively minimal, as the company only generates 11 percent of its revenue from the Chinese market.
