Micron is in search of companions to broaden Sanand plant, begin developing 2nd part of chip manufacturing facility – Firstpost

Micron Expertise is planning the enlargement of its semiconductor plant in Sanand, Gujarat, and is now in search of new building companions for the second part of the mission. The corporate has invited bids, with Larsen & Toubro and KEC Worldwide among the many corporations being thought-about.

This comes after delays within the first part of the mission, which was initially anticipated to be accomplished in 2024 however is now scheduled to be operational in early 2025. Tata Initiatives had been awarded the contract for the primary part in September 2023, however sources counsel Micron could also be evaluating different distributors attributable to building setbacks.

Overcoming delays and shifting ahead

Micron’s semiconductor facility in Gujarat is the primary mission permitted underneath India’s Semiconductor Mission (ISM). With a complete funding of $2.75 billion, Micron is contributing $825 million, whereas the Indian authorities is overlaying 50 per cent of the price and the Gujarat state authorities is offering an extra 20 per cent in incentives.

Regardless of robust monetary backing, the mission has confronted delays. The primary part, which incorporates 500,000 sq. ft of cleanroom area, is but to be accomplished. Business sources point out that Micron has been actively looking for new engineering corporations for the second part over the previous two months, presumably seeking to keep away from additional setbacks.

Authorities officers acknowledge that the preliminary 24-month timeline was formidable, however they continue to be optimistic that the ability will begin producing its first chips this 12 months. The mission is a key a part of India’s technique to strengthen its semiconductor business and cut back dependence on international provide chains.

Increasing semiconductor capabilities in India

The second part of Micron’s facility will concentrate on meeting and testing, generally known as OSAT (Outsourced Semiconductor Meeting and Testing). This stage includes packaging, testing, and guaranteeing the standard of semiconductor chips earlier than they’re distributed. The power may even manufacture ball grid array (BGA) built-in circuit packages, reminiscence modules, and solid-state drives.

Tata Initiatives, which is dealing with the primary part, has reported that 60 per cent of the work is full, with the remaining building anticipated to be completed by the top of 2025. Nevertheless, with Micron now contemplating new companions for the following part, it seems the corporate is trying to make sure a smoother and quicker execution of its enlargement plans.

When Micron signed an settlement with the Gujarat authorities in June 2023, it projected that the ability would generate 5,000 direct jobs and an extra 15,000 oblique jobs. As India accelerates its efforts to develop into a significant participant in semiconductor manufacturing, Micron’s Sanand plant stays a important a part of that imaginative and prescient.

For now, Micron’s precedence is securing the suitable companions to maintain the mission on monitor. With Section 2 in movement, the main target is on avoiding additional delays and guaranteeing the ability performs a key function in India’s rising semiconductor ecosystem.