Micron Technology is expected to begin commercial chip production at its Sanand, Gujarat, facility by the end of February, Union Minister for Electronics and IT Ashwini Vaishnaw said at the World Economic Forum in Davos, marking a major step in India’s bid to become a dependable node in the global semiconductor supply chain.
Micron’s Gujarat facility nears commercial operations
The Sanand plant, developed as a large-scale assembly and testing unit for memory chips, has been built with an investment of about $2.75 billion. The facility focuses on assembly, testing, marking and packaging (ATMP) — key back-end processes in the semiconductor value chain that prepare dies for integration into electronic products.
Government sources said trial runs at the site have been completed successfully, clearing the way for full commercial production. Once operational, the plant will supply a range of memory products for both domestic consumption and export markets.
Promoted under the India Semiconductor Mission with fiscal and policy incentives from the Centre and the Gujarat government, the site spans a large industrial area and is being positioned as one of the world’s largest backend semiconductor facilities.
Broader strategy to build a complete semiconductor ecosystem
Vaishnaw emphasised that India’s approach extends beyond short-term production targets to a long-term roadmap that aims to move along the technology curve from mature nodes to more advanced processes over time.
The national semiconductor strategy aims to develop capabilities across design, fabrication, packaging, testing and the domestic supply of critical materials. Officials say this end-to-end focus is intended to make India an attractive, reliable partner for global electronics and technology companies.
Over recent years, India has secured multiple international collaborations to strengthen supply chains, access technologies and ensure availability of essential raw materials used in chip production.
Economic impact and job creation
Industry analysts view Micron’s commercial launch as an endorsement of the Make in India initiative that could boost investor confidence and attract additional semiconductor investments. The Sanand facility is expected to generate thousands of direct and indirect jobs, spanning high-skill engineering roles to positions in logistics, maintenance and ancillary services.
Local ATMP capacity could catalyse growth in supporting industries such as chemicals, precision equipment manufacturing and specialised services, while reducing import dependence for memory components used across smartphones, automotive electronics and data-centre infrastructure.
India’s role in global chip supply chains
Rising global demand for semiconductors — driven by data centres, electric vehicles and AI applications — has prompted companies and governments to diversify production beyond traditional hubs. The Micron project is widely seen as the first tangible payoff from India’s semiconductor policy framework.
With several other semiconductor and electronics projects in the pipeline, policymakers expect 2026 could be a turning point for India’s positioning within the global technology and manufacturing landscape.
