Micron signed a preliminary agreement to build the first Indian chip factory, with a total investment of 2.75 billion US dollars.

CTOnews.com June 28 news, US memory chip company Micron Technology signed a memorandum of understanding with the Indian government on Wednesday local time to build a semiconductor factory in India, which is also the company's first factory in India.

Micron said it would invest as much as $825 million in the plant (CTOnews.com notes: currently about 5.956 billion yuan), bringing the total investment to $2.75 billion (currently about 19.855 billion yuan).

In addition, the central government of India and the government of Gujarat will provide 50% and 20% of the project expenditure respectively according to the ATMP (assembly, testing, marking and packaging) plan previously issued to support the development of the semiconductor industry, which also means that the Indian government subsidies account for up to 70% of the total expenditure.

Pixabay said the facility, which will be built in Sanand district near Ahmedabad city in Gujarat, will enable assembly and test manufacturing of DRAM and NAND products, creating up to 5000 new direct jobs and 15000 community jobs over the next five years.

Specifically, the first phase of the project will be built within the year, mainly including an area of 500,000 square feet (about 46,000 square meters) for semiconductor sealing and testing clean room, Micron said the clean room will be put into operation by the end of 2024, and gradually increase production to meet global demand.

Micron also expects the second phase of the project to begin after 2025 and to be similar in scale to the first phase. The two phases will create 5000 jobs and 15000 community jobs directly.