Micron’s announcement of a new semiconductor assembly and testing facility in India is a major victory for India’s semiconductor mission.

One of the biggest semiconductor businesses in the world, Micron Technology, Inc., has announced intentions to build a new semiconductor assembly and test facility in Gujarat, India.

During Prime Minister Narendra Modi’s official visit to the US, the announcement was made.

According to Reuters, quoting a government official, the union government has agreed to offer production-related incentives for the facility, which is slated to be built in Gujarat, worth 110 billion rupees ($1.34 billion).

This factory, the first of its kind in India, will concentrate on producing DRAM and NAND devices through assembly and testing for both home and foreign markets.

The facility’s construction will be done in stages, with the first phase beginning in 2023. This phase, which is anticipated to be completed by the end of 2024, will have a projected cleanroom area of 5,000 square feet. Micron intends to gradually expand capacity over time in accordance with patterns in global demand.

The second phase of the project, which would involve building a facility of a size comparable to Phase 1’s, is anticipated to begin in the latter half of the decade.

Over the course of the two stages, Micron will invest up to $825 million in the project, which is anticipated to generate up to 5,000 new direct jobs for the company as well as 15,000 new jobs for the community.

The combined investment by Micron and the two governmental bodies would amount to $2.75 billion over the course of the two stages thanks to financial backing and incentives from the Gujarat state and the national government of India.

The new facility will be developed and run in accordance with Micron’s sustainability objectives as well as regional and international environmental regulations.