Micron Technology revealed plans to invest $825 million in a new chip assembly and test facility in India, with the government contributing 50 per cent of the total project cost and the state of Gujarat covering 20 per cent in the form of incentives.

In a statement, Micron Technology noted the combined investment across two construction phases will total up to $2.8 billion and create about 5,000 jobs.

Production of DRAM and NAND products at a 46,500-square-metre plant in the first phase is scheduled to start in late 2024. Construction of a similar-sized facility in phase 2 is expected to begin towards the second half of the decade.

Micron Technology president and CEO Sanjay Mehrotra said the plant will enable it to expand its global manufacturing base and “better-serve our customers in India and around the world”.

He added the company is “excited about the steps India is taking to develop the local semiconductor ecosystem”.

Mehrotra reportedly met with Indian Prime Minister Narendra Modi yesterday (22 June).

Earlier in the week, Reuters reported India’s cabinet approved INR110 billion ($1.3 billion) in production-linked incentives for the facility.