Micron opens Sanand semiconductor assembly and test facility as Centre flags wider chip supply-chain push

Micron Technology on February 28, 2026 formally inaugurated its semiconductor assembly, test, marking and packaging facility in Sanand, Gujarat, in the presence of Prime Minister Narendra Modi, in what the Centre and the state described as a step towards adding domestic capacity in the global semiconductor value chain.

At the event near Ahmedabad, Modi framed semiconductors as a strategic link between the industrial economy and the AI-led technology cycle, saying microchips would shape the 21st century much as oil influenced the 20th. He said India was positioning itself as a dependable destination for technology and manufacturing partnerships and repeated: “India is ready, India is reliable and India delivers.”

The project investment was cited at about ₹22,516 crore in the official statement. Government officials said the Sanand unit will focus on the back-end stages of chip manufacturing, including assembly and packaging processes that turn semiconductor inputs into finished memory and storage products used in devices and data-centre infrastructure.

Modi toured the facility and reviewed an exhibition detailing operations at the ATMP plant. The government said the unit has been built under the umbrella of India’s semiconductor policy framework and is intended to encourage a broader ecosystem around manufacturing, component supply, logistics and skilled talent.

A key plank of the messaging at the inauguration was execution speed. Modi said the memorandum of understanding was signed in June 2023, the foundation stone was laid in September that year, and commercial production began in February 2026. He contrasted this with longer timelines typically seen in mature manufacturing hubs, attributing the pace to coordination between the Centre, the state and the company.

The Prime Minister said India’s goal was not to add isolated capacity but to build an integrated ecosystem, citing the need for a pipeline spanning chip design engineers, equipment and machine makers, chemicals and gases, and movement of high-value components. He referred to the next phase of policy measures as “India Semiconductor Mission 2.0”, presenting it as a step aimed at deeper localisation as production volumes scale.

Gujarat Chief Minister Bhupendra Patel said Gujarat was seeking to build global-scale capabilities in new sectors such as AI and semiconductors and noted that the state announced a semiconductor policy in 2022. He said Sanand and Dholera were being developed as major centres for semiconductor projects, and argued that the initiative would support skilled employment and ancillary manufacturing.

Union minister Ashwini Vaishnaw said semiconductors underpin devices ranging from mobile phones and laptops to servers, and said India’s electronics manufacturing base has expanded in the last decade. He said the focus ahead would be on strengthening the full stack—design, manufacturing, and supporting industries such as equipment and materials—so that more of the supply chain is anchored domestically.

Micron CEO Sanjay Mehrotra said the company’s India facility would contribute to scaling memory and storage products, including SSDs and memory technologies used in high-performance computing. The official statement said the unit currently employs around 2,000 people and is expected to expand beyond 5,000 direct jobs over time. It also said the facility will provide employment opportunities to persons with disabilities as operators and technicians.

The event was attended by senior state ministers, MPs and MLAs, and officials including Chief Secretary M.K. Das and senior secretaries.