Prime Minister Narendra Modi on Friday inaugurated the Semiconductor Assembly, Test and Packaging (ATMP) facility of American company Micron in Gujarat’s Sanand, saying it marks India’s decisive entry into the global semiconductor manufacturing chain.
He said the development reflects India’s transition from a software-focused economy to one strengthening its hardware base. “After the world’s largest and most successful AI Summit [this month], we are witnessing another historic milestone. While the AI Summit introduced the world to India’s AI prowess, today’s event is proof of India’s commitment to technology leadership,” he said at the inauguration ceremony in the presence of US ambassador Sergio Gor and Micron chairman, president, and CEO Sanjay Mehrotra. .
Modi referred to semiconductor manufacturing and said a country known for software is now strengthening its identity in hardware. “In Sanand, we are seeing the rise of a new future. The commencement of commercial production at Micron’s ATMP facility will strengthen India’s role in the global technology value chain,” he said.
Modi said this century is the century of AI, and semiconductor technology is the bridge in this transformation. “A small chip connects the Industrial Revolution and the AI Revolution. If oil shaped the last century, microchips will shape this century.”
Modi said the Sanand facility is a testament to the robust partnership between India and the US, particularly in AI and chip technology. He said the world’s largest democracies, India and the US, are working to secure the global supply chain. Modi said the Pax Silica agreement signed during the AI Summit was a key effort to make the supply chain for critical minerals more reliable.
Modi said that the commercial production has begun at the Sanand facility around three years after the groundbreaking. “In February 2024, machines began to be installed in the pilot facility,” he said. “Those who understand this sector know what this speed means. In developed countries, advanced pricing agreements can take three to five years to complete. India cleared it in a few months,” he said.
Modi said India announced its Semiconductor Mission during the the Covid pandemic. “Under the Semicon India Programme, 10 projects have been approved so far. Apart from Micron, three more projects are expected to begin production soon.”
Gor described the Sanand facility as India’s first major semiconductor assembly and test plant and said the $2.75 billion investment represents far more than a new factory. “It represents the future of American technology leadership, the strength of the US-India partnership, and our shared commitment to building resilient supply chains that serve both our nations and the world,” he said.
He added that semiconductors are the foundation of modern technology and that building resilient supply chains requires trusted semiconductor ecosystems across multiple locations. “Today marks India’s entry into the global semiconductor supply chain as a manufacturing nation,” he said. He noted that 10 semiconductor projects worth $19 billion were underway across the country.
Gor said that under President Donald Trump’s leadership, the US was securing its position at the forefront of the global semiconductor industry. He referred to Micron’s $100 billion MegaFab project in Clay, New York, and said it was the largest semiconductor manufacturing project in US history and demonstrated commitment to advanced chip manufacturing at home while building trusted partnerships abroad.
“But American leadership isn’t about doing it alone. It’s about working with our partners who share common goals and our vision for a secure, prosperous future,” Gor said.
“Prosperity doesn’t just come automatically. It is a result of trust, leadership, and friendship. And I can tell everybody in this room that our President has a dear friendship with your Prime Minister. It is something that has endured for many years in the past, and it is something that we will carry on for the next three years of the Trump administration in Washington.”
Gor referred to the Modi-Trump meeting in Washington last February and said the two leaders had launched the US–India COMPACT (Catalysing Opportunities for Military Partnership, Accelerated Commerce, and Technology). He said the TRUST (Transforming the Relationship Utilising Strategic Technology) initiative focused on strategic technologies, is at the heart of that framework.
“Semiconductors are the foundation of modern technology, powering everything from smartphones to defense systems, from artificial intelligence to autonomous vehicles. Creating resilient supply chains for these critical components requires building semiconductor ecosystems in multiple trusted locations,” he said.
The ATMP facility at Sanand will manufacture integrated circuit packages, modules, and solid-state drives for the global market. It will receive advanced DRAM and NAND wafers from Micron’s global factories and convert them into finished memory products to support rising demand for memory and storage solutions in the AI sector.
Around 2,000 people are working at the site. The project is expected to generate about 5,000 direct employment opportunities once fully scaled.
Mehrotra described the project as a milestone for India’s semiconductor ecosystem. “This pioneering facility, the first assembly and test site of its kind in the country, helps build a resilient ecosystem that underpins the global AI economy. We are deeply grateful to the government of India, the Gujarat government, and all of the partners involved for their steadfast support in making this achievement possible,” he said.
Micron presented its first shipment of made-in-India memory modules to Dell Technologies for laptops manufactured in India for the domestic market to mark the facility’s opening, the company said in its statement. Micron expects to assemble and test tens of millions of chips at Sanand in 2026, scaling to hundreds of millions in 2027, it added.
