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Business News/ Companies / News/  Micron's top supplier Simmtech gets approval for set up unit in Sanand

Micron's top supplier Simmtech gets approval for set up unit in Sanand

Micron intends to build several semiconductor assembly and packaging units in India, in addition to its proposed fabrication unit

Micron breaks ground for its first semiconductor assembly and test plant in Sanand, Gujarat Premium
Micron breaks ground for its first semiconductor assembly and test plant in Sanand, Gujarat

Sanand: The top supplier to US chipmaker Micron Technology, Inc., Simmtech, which makes substrates, has received approval for setting up a unit in Sanand, Gujarat, close to the chip maker's facility,  Ashwini Vaishnaw, minister for telecom, IT and railways, told Mint on Saturday.

While the minister declined to reveal the quantum of investment Simmtech will deploy for manufacturing plant, he said that this is the first in the set of multiple supply partners that the American company will bring to India in the coming months and years as it builds its first assembly, testing, marking and packaging (ATMP) unit in the country in Gujarat.

"The new company that has been allocated land is Simmtech. They make substrates which is the most valuable component," he said.

"We've started from the most important component and the equipment suppliers that will be required for making the chips here will also come, the talks have already begun," a senior executive from Micron said. He added that other companies in the supply chain are also likely to come to India.

Micron Technology will set up a 1.4 million sq ft ATMP plant, the first phase of which will begin producing packaged chips by December 2024, Gursharan Singh, vice president of the company said at the groundbreaking ceremony. The facility will have a 500,000 sq ft of clean room space. The plant will be constructed by Tata Projects, for which an agreement was signed on Saturday.

He added that the capacity of the plant will be depend on domestic as well as global demand at that time, and the unit will supply to global markets besides the local market. The second phase of the $2.75 billion project will begin in the second half of the decade, he said, but did not share details.

Singh also added that the company has begun hiring for the new plant and the first 30 designers have been on boarded.

Mint had earlier reported that Micron is likely to set up four to five such plants going forward. The central and state governments are giving $1.95 billion in financial support for the new plant which will bring 5000 direct and 15,000 indirect jobs.

Rajeev Chandrashekhar, minister of state for electronics and information technology, had told Mint that Micron had indicated that it will produce several kinds of chips at the India facility. He had said that the government will ensure no roadblocks are faced by the US based chip maker in its India journey.

He added that the Centre was working with state governments to ensure that the spirit of cooperative federalism continues in the ecosystem of semiconductors. He noted that the government had provided prompt approvals to Micron to help the company start its India journey in record time.

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Gulveen Aulakh
Gulveen Aulakh is Senior Assistant Editor at Mint, serving dual roles covering the disinvestment landscape out of New Delhi, and the telecom & IT sectors as part of the corporate bureau. She had been tracking several government ministries for the last ten years in her previous stint at The Economic Times. An IIM Calcutta alumnus, Gulveen is fluent in French, a keen learner of new languages and avid foodie.
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Published: 23 Sep 2023, 04:54 PM IST
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