The Electronic Industries Association of India (ELCINA) has praised Micron’s recent announcement of a mega semiconductor testing and packaging facility in India. The Union Cabinet’s approval for this project, which involves an investment of Rs 22,500 crore ($2.7 billion), marks a significant milestone for India’s semiconductor ecosystem. ELCINA commends the Ministry of Electronics and Information Technology (MeitY) for their efforts in securing this investment and believes it will not only strengthen India’s semiconductor industry but also attract other major players to explore opportunities in the country.
India has experienced rapid growth as a global producer in various electronics segments such as consumer, automotive, industrial, and mobile. Recognizing the importance of nurturing a robust semiconductor ecosystem, the government has introduced incentives and actively pursued collaborations with global semiconductor manufacturers. However, the absence of a domestic semiconductor fabrication unit has been a challenge. Micron’s investment is a major step towards addressing this gap and advancing India’s pursuit of an independent and self-reliant semiconductor industry.
The new facility is expected to create over 5,000 job opportunities, contributing to the growth of the job market and the development of skilled manpower in India’s semiconductor sector. This move will foster innovation and technological advancements, further enhancing the country’s position in the global semiconductor landscape.
ELCINA acknowledges MeitY’s tireless efforts in attracting semiconductor investments and creating an enabling environment for the industry’s growth. The comprehensive scheme, including the Rs 76,000 crore incentive package announced in December 2021, has been instrumental in incentivizing technologically-sophisticated companies to invest in India. Shri. Sanjay Agarwal, President of ELCINA, expressed his appreciation for the announcement, emphasizing its positive impact on domestic chip demand and India’s journey towards self-reliance in this critical sector.
Dr. Ashwini Aggarwal, Director (Govt Affairs) at Applied Materials and Chairperson of the Semiconductor Special Interest Group (SIG) at ELCINA, recognized the government’s commitment to nurturing domestic talent. This includes partnerships with top Indian universities and the development of a specialized talent pool focused on the semiconductor industry. These initiatives strengthen India’s position as a preferred destination for semiconductor manufacturing and design.
Mr. Rajoo Goel, Secretary-General of ELCINA, highlighted the importance of focusing on the back-end semiconductor value chain, with the ATMP unit serving as the cornerstone for building the ecosystem, followed by the semiconductor fab. He congratulated Shri Vijay Nehra, Secretary, DST, Govt of Gujarat, and emphasized that this milestone will contribute to the targeted $300 billion of domestic electronics production and the $1 trillion digital economy by 2025.
The Government of Gujarat has adopted a focused policy-driven approach by launching an exclusive semiconductor policy and electronics policy, supported by compelling incentives. As one of India’s most industrialized states with a vibrant economy and excellent social infrastructure, Gujarat is the preferred destination for electronics manufacturing.
ELCINA extends its support to Micron and looks forward to collaborating with all stakeholders in creating a thriving semiconductor supply chain. This includes capital equipment, consumables, raw materials, specialized services, and skilled manpower. The association remains dedicated to fostering innovation, driving sustainable growth, and ensuring India’s active participation in the global electronics industry.
In conclusion, Micron’s investment in a mega semiconductor testing and packaging facility in India has received applause from ELCINA. This landmark investment signifies a transformative milestone for India’s semiconductor ecosystem, strengthening the industry and attracting further investments. With a focus on developing a comprehensive semiconductor industry, India is poised to become a significant player in the global electronics manufacturing space. The government’s efforts, supported by incentives and collaborations, aim to foster innovation, create job opportunities, and drive sustainable growth in the semiconductor sector.