The Gujarat government on Wednesday signed a Memorandum of Understanding with computer storage chip maker Micron for setting up a $2.75 billion semiconductor assembly and test facility at Sanand in Ahmedabad district.
The MoU was signed in the presence of Electronics and Information Technology Minister Ashwini Vaishnaw and Chief Minister Bhupendra Patel, a government release said.
For the last many decades India is dependent upon import of semiconductor chips and the demand for them will increase as the manufacturing sector in the country grows, it said.
The plant at Sanand will entail a total investment of $2.75 billion (around Rs 22,540 crore), it added.
Micron's plant has been approved under the Union government's 'Modified Assembly, Testing, Marking and Packaging (ATMP) Scheme'.
Under the scheme, Micron will receive 50% fiscal support for the total project cost from the Indian government and incentives representing 20% of the total project cost from the Gujarat government.
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