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According to Micron Technology, an India location is essential for meeting global semiconductor demand 2023

According to Micron Technology, an India location is essential for meeting global semiconductor demand.

According to CEO Sanjay Mehrotra, the Sanand, Gujarat factory will be essential to supply the expanding demand for semiconductors worldwide.

Micron Technology, a prominent US semiconductor manufacturer, announced on Friday that its forthcoming semiconductor assembly plant would generate 5,000 direct employees and 15,000 indirect ones for the area during the following years.

According to CEO Sanjay Mehrotra, the Sanand, Gujarat factory will be essential to supply the expanding demand for semiconductors worldwide.

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“Micron is extremely happy to be the market leader for semiconductors in India. There will be a considerable increase in the memory storage packages needed as computers become more prevalent and integrated into many facets of everyday life. Our India location will help us satisfy the rising demand and our other worldwide production facilities, added Mehrotra.

“We are optimistic that this investment will serve as a catalyst for additional investments in the sector, enhance domestic manufacturing capacity, promote innovation, and support more jobs being created overall.”

The corporation is reportedly close to beginning the Sanand facility’s development.

Earlier this month, the US-based business revealed intentions to establish a $2.75 billion chip packaging (assembly, testing, marking, packaging) operation here. The first made-in-India chip under the project is anticipated to be released by December 2024, and once the factory is fully operating, $1 billion in annual output is expected.

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In its factories in China and Japan, Micron creates wafers, which are raw materials. The business will ship the plain wafers to the India facility, where they will be turned into chips, packaged, and then sent around the world to companies that make goods that employ semiconductors.

The government offers a 50% subsidy to businesses that demonstrate an interest in establishing semiconductor facilities and meet the requirements as part of the Rs 76,000 crore incentive programme.

State governments in the locations where the concerned enterprises choose to build the units may add to this with their subsidies. The Gujarati government is offering an additional 20% subsidy in the case of Micron. Consequently, Micron will only have to fork up $825 million of the $2.75 billion overall expenditure.

As the worldwide demand for semiconductors continues to surge, Micron Technology, one of the leading American producers of computer memory and data storage, has underscored the crucial role of its India-based facility in satisfying this escalating need.

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Even as we advance into the digital era, the globe’s thirst for semiconductors shows no signs of abating. Several market dynamics, including the proliferation of IoT devices, the advent of 5G, the digitization of industries, and the rise of AI and Machine Learning, are driving unprecedented demand for semiconductors.

Additionally, the COVID-19 pandemic’s impact has led to a significant shift in working habits, with remote working and online learning becoming the norm. This change has resulted in a substantial uptick in electronics demand, further straining the already overstretched semiconductor industry.

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To keep up with this surging demand, Micron Technology has been executing a strategic vision that involves scaling up its manufacturing capacity and investing in talent and infrastructure in regions with high potential. And in this regard, India has emerged as a significant player in Micron’s global strategy.

In an official statement, Micron Technology underscored the critical role that its India facility plays in the company’s global operations. The facility supports the company’s manufacturing and research and development (R&D) and serves as a hub for software development and IT services.

Micron’s Hyderabad facility, established in 2019, is their most significant design and engineering centre outside the United States. With over 2,000 engineers and developers, this centre has been instrumental in designing and developing cutting-edge memory and storage solutions for global markets.

Micron’s investment in India is not only a testament to the country’s strong engineering talent pool but also reflects the conducive business environment, supportive government policies, and the increasing significance of India in the global semiconductor supply chain.

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With its advanced capabilities and talented workforce, Micron’s India facility has been pivotal in ensuring the company can meet global chip demand. The facility’s focus on memory and storage solutions, vital components of virtually all electronics and digital devices, positions it as a critical contributor to its global supply chain.

By investing in scaling up its operations in India, Micron is leveraging the country’s abundant talent pool and strategic geographic location to increase its output and contribute to the stability of the global semiconductor supply chain.

Looking ahead, Micron plans to expand its India operations further by investing in new technologies and scaling up its workforce. This move aims to enhance the facility’s capabilities, ensuring that Micron stays ahead of the curve in meeting the surging global demand for chips.

The steps taken by Micron signal a shift in global semiconductor manufacturing strategies, where a diversified supply chain and investments in strategic locations like India could be crucial in ensuring the industry’s resilience in the face of growing demand.

Why The Global Chip Shortage Is Lasting So Long And Why It Will Have A Positive End

As the world grapples with an unprecedented semiconductor demand, companies like Micron are recalibrating their strategies and leveraging strategic locations to meet this demand. And in this global race, Micron’s India facility has proven to be a key player, underscoring the increasing significance of India in the worldwide semiconductor industry.

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