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Micron opens $2.75bn chip assembly plant in India

Test and assembly site in Gujarat marks India’s first commercial semiconductor production following multibillion-dollar investments in US and Singapore to meet growing demand for storage and memory chips

Micron Technology has opened its first semiconductor test and assembly facility in Sanand, Gujarat, representing a combined investment of about $2.75bn by the chipmaker and its government partners.

The facility converts advanced DRAM and NAND wafers from Micron’s global manufacturing network into finished memory and storage products. Once fully ramped up, the first phase of the Sanand operation will feature more than 500,000 ft2 of cleanroom space, making it one of the world’s largest single-floor test and assembly cleanrooms.

The ISO-certified site has already begun commercial production. To mark the opening, Micron presented its first shipment of made-in-India memory modules to Dell Technologies for use in locally manufactured laptops. Micron expects to test and assemble tens of millions of chips at the Sanand plant in 2026, scaling to hundreds of millions in 2027.

Sanjay Mehrotra, president and CEO of Micron Technology, described the launch as a “proud moment” for the company and India’s growing semiconductor industry. “This pioneering facility, the first assembly and test site of its kind in the country, helps build a resilient ecosystem that underpins the global AI [artificial intelligence] economy,” he said.

Speaking at the facility’s inauguration, which was broadcast live to the public on YouTube, Indian prime minister Narendra Modi noted that the opening was a major leap forward for the country’s technological ambitions.

“While the AI Summit introduced the world to India’s AI prowess, today is a testament to India’s commitment to technology leadership,” he said. “India, long known for its software strength, is now firmly establishing its identity in the hardware sector as well. If oil was the regulator of the last century, microchips will be the regulator of this century.”

Addressing the global technology sector directly, Modi added: “India has just one message for investors around the world: India is ready, India is reliable, India delivers.”

Ashwini Vaishnaw, India’s union minister for railways, communications, electronics and IT, noted that the inauguration marks a major step for the country’s chip production capabilities. “India is now moving from being a consumer of chips to becoming a global hub for semiconductor manufacturing and innovation,” he said.

Global supply chain resilience

The expansion of test and assembly operations in India is part of broader efforts by Micron to diversify its global manufacturing footprint and meet the growing market demand for storage memory driven by the boom in AI and data-centric applications.

In January 2026, Micron started constructing a $24bn advanced wafer fabrication facility in Singapore that will produce NAND flash memory. The Singapore expansion will feature the country’s first double-storey wafer fab and provide an additional 700,000ft2 of cleanroom space when it becomes operational in 2028.

Just weeks prior, Micron also formally broke ground on a new megafab in Clay, New York. While the Singapore facility focuses on NAND flash chips, the New York complex will produce DRAM system memory. Micron expects to invest up to $100bn over the next two decades to build what it claims will be the largest semiconductor facility in the US.

By increasing capacity across North America, Southeast Asia, and now India, the company aims to build a more resilient supply chain capable of weathering geopolitical friction and regional disruptions.

To support its Gujarat operations, Micron is partnering with Indian institutions, including Pandit Deendayal Energy University and Namtech, as well as government-sponsored skills development programmes. These initiatives are focused on science, technology, engineering and mathematics education, specialised training for advanced manufacturing roles, and digital AI literacy across the region.

In line with the chipmaker’s environmental commitments, the Sanand facility has been designed to meet Leadership in Energy and Environmental Design gold standards, and uses advanced water-saving technologies to achieve zero liquid discharge.

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