Tata Projects Begins Construction of Micron’s Semiconductor Facility in Sanand

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Key Facts: 

The country’s semiconductor market is expected to grow from $26.3 billion in 2022 to $271.9 billion by 2032. 

Tata Projects has commenced the construction of Micron Technology’s semiconductor assembly and testing facility in Sanand, Gujarat. 

Prime Highlights: 

The project follows a $2.75 billion agreement signed between the Gujarat government and Micron in June 2023. 

The facility is expected to generate 5,000 direct jobs and 15,000 indirect jobs once operational. 

60% of the construction work for Phase-1 has been completed, with 3,500 workers currently involved. 

Key Background: 

Tata Projects has officially commenced the construction of Micron Technology’s semiconductor assembly and testing facility in Sanand, Gujarat. The project, announced in June 2023, follows a $2.75 billion agreement between the Gujarat government and the US-based chipmaker. Upon completion, the facility will be one of the largest back-end semiconductor plants globally, with the potential to create 5,000 direct and 15,000 indirect jobs. 

The state-of-the-art facility, located in the Sanand industrial area near Ahmedabad, is being developed on 50 acres of land. Work on the facility began in July 2023, with 60% of Phase-1 construction already completed, according to Amit Agrawal, Project Director at Tata Projects. The plant will focus on assembly, testing, marking, and packaging (ATMP) of semiconductors—functions that are critical in the production of semiconductor devices. 

At present, 3,500 workers are engaged in the construction of the facility, which is expected to be handed over to Micron by December 2025. Tata Projects will complete the civil work, mechanical, electrical, and plumbing tasks, along with other engineering-related activities, in line with Micron’s designs. The exact timeline for the plant’s operational commencement will be determined by Micron. 

The semiconductor plant is part of India’s broader strategy to establish itself as a global hub for semiconductor manufacturing. As the country accelerates its push to become a key player in the industry, a report from talent solutions firm NLB Services predicts that India’s semiconductor sector will generate approximately one million jobs by 2026. These will span a range of roles, including in chip fabrication, ATMP functions, design, software development, and supply chain management. The Sanand facility is a significant step in realizing India’s semiconductor ambitions and is expected to have a substantial economic impact on the region. 

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