Micron Technology Inc, a prominent US semiconductor company, is set to build a chip assembly facility in India, marking a significant stride towards the nation’s self-reliance in the semiconductor industry. Under the ambitious $10-billion India Semicon incentive plan, the Indian government has granted 50% financial support for the project, complemented by an additional 20% incentives from the Gujarat government.

Collaboration between India and the United States was solidified during Prime Minister Narendra Modi’s recent visit to Washington, where Micron Technology announced its plans to establish a $2.75 billion semiconductor testing and assembly facility.

According to a report from Financial Times, Micron Technology will lead this massive project in Gujarat with support from the Indian government. The initiative, known as the India Semiconductor Mission, aims to gather support from various partners in the supply chain, including chemical, gas, and manufacturing equipment suppliers, as well as companies interested in setting up silicon wafer fabrication plants.

Ashwini Vaishnaw, the Indian Minister for Electronics and Information Technology, expressed that this endeavor represents a new industry for India, with an ambitious timeline of just 18 months to make the factory operational by December 2024.

The establishment of India’s first semiconductor chip manufacturing unit is a significant milestone, strengthening the nation’s efforts towards self-sufficiency in microchip production. This development is expected to enhance India’s technological prowess and contribute to overall economic growth.

India’s Semiconductor Market Outlook:

India’s semiconductor market is poised for robust growth, with a projected Compound Annual Growth Rate of 24.32% by 2029. Key factors driving this growth include increasing consumer demand for electronic products and government initiatives to promote electronic manufacturing.

The Indian government has introduced a $9.43 billion incentive program for semiconductor fabrication and design, with up to 50% government co-funding. Additional schemes worth approximately $10 billion have been approved to encourage semiconductor and display manufacturing. The establishment of electronic parks and clusters in specific states aims to attract investment and industry players.

Noteworthy developments include the joint venture between Vedanta and Foxconn and the Micron factory plan in Gujarat. Collaborations between academic institutions and industry giants, such as the Indian Institute of Technology (BHU) and Applied Materials, focus on semiconductor research.

The India Semiconductor Market is segmented based on components, applications, types, and regions. Key players in the market include Broadcom India Private Limited, Chiplogic Semiconductor Services Private Limited, Tata Elxsi Limited, NXP Semiconductors India Private Limited, and STMicroelectronics Private Limited.

The anticipated growth in the semiconductor market is expected to drive India’s technological advancements and fuel economic growth in the years to come.