The Gujarat government on Wednesday signed an MoU with computer storage chip maker Micron to set up a USD 2.75 billion semiconductor assembly and test facility at Sanand in Ahmedabad district.
A government release said the MoU was signed in the presence of Electronics and Information Technology Minister Ashwini Vaishnav and Chief Minister Bhupendra Patel.
It said that India has been dependent on imports of semiconductor chips for the last several decades and as the manufacturing sector in the country grows, its demand will also increase.
It added that the plant at Sanand would see a total investment of US$ 2.75 billion (about Rs 22,540 crore).
Micron’s plant has been approved under the ‘Amended Assembly, Testing, Marking and Packaging (ATMP) scheme’ of the central government.
Under the scheme, Micron will get financial support of 50 per cent of the total project cost from the Government of India and 20 per cent incentive of the total project cost from the Government of Gujarat.
Read this also | PM Modi’s US visit: Micron to set up $2.75 billion semiconductor plant in Gujarat; will create 5,000 new jobs