New Delhi: American-based computer memory chip maker Micron is ready to establish its semiconductor assembly and test plant in Gujarat for an investment worth Rs 22,540 crore, the company said on Thursday.

The firm will invest around Rs 6,760 crore whereas the remaining part of the funds to come through the government in two phases.

Micron’s President and CEO stated that “We are excited about the steps India is taking to develop the local semiconductor ecosystem, Micron.”

Mehrotra further added that Micron’s new assembly and test plan in India will provide an opportunity of enlargement to its global manufacturing base and provide better services to its target audience in India as well as across the world.

Micron’s Gujarat plans have been approved under the government’s Modified Assembly, Testing, Marking and Packaging (ATMP) Scheme.

The scheme will provide 50 per cent of the financial support to Micron for the total project cost from the Indian central government with incentives constituting 20 per cent of the total project cost coming through the state of Gujarat.

“Phased construction of the new assembly and test facility in Gujarat is expected to begin in 2023. Phase 1, which will include 500,000 square feet of planned cleanroom space, will become operational in late 2024, ” Micron said in a statement.

The company further added, “The combined investment by Micron and the two government entities over the course of both phases will be up to USD 2.75 billion. Government support will help fund the project and facilitate access to essential semiconductor infrastructure and resources to drive innovation and enhance local talent development.”

The chip-making company plans to create 5,000 new direct job opportunities along with 15,000 community jobs over the next few years.

Earlier, Union Minister for IT and Telecom Ashwini Vaishnaw told that Micron’s investment to set up manufacturing plants in India will give India’s semiconductor industry a new platform by spawning high-tech and construction jobs.