Companies like Larsen & Toubro and KEC International are in conflict. Micron, which has installed assembly and testing facilities in Sanand, Gujarat, said the first phase will be operational in early 2025. The previous timeline for the project was 2024.
In September 2023, the TATA project signed a contract to build an advanced semiconductor plant for microns in the first phase. People who knows that Micron may be evaluating vendors other than the TATA project due to operational delays in the first phase of the project.
Queries sent to Micron, Tata Projects, L&T and KEC International remained unanswered at press Tuesday.
“Mikron has begun phase 2 and has begun to invite bids for design and construction,” one of the people told ET. “They have already set up OSAT facilities. Now they plan to set up a testing and assembly facility that is likely to take about three years.”
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Under OSAT (Outsourced Semiconductor Assemblies and Testing), companies handle the final step in creating semiconductors. Package and test the chips to make sure they work well and meet quality standards. ATMP (assembly, test, marking, packaging) assembles, tests, marks with important information, and packages them for distribution.
Micron was the first project approved by the government under the Indian Semiconductor Mission (ISM). The total financial value of the project is $2.755 billion, of which $825 million is the amount pumped by microns. The company will receive financial support from the central government of 50% of the total project cost and an incentive representing 20% of the total project cost. Gujarat.
Those who know say the first phase has already passed its deadline and will need at least another year to complete.
“Mikron went into Phase 2 about two months ago and is floating to hire an engineering company for construction. They have a long time on the project and are almost not complete, so they have an existing partner. He’s not keen to work with. People add: “I’ve heard they’re talking with companies like L&T and KEC International.”
“There was a delay in this project, but this year we’ll have our first tip,” a government official told ET. “We also warned them that the 24-month timeline (to outsource to the factory) might be a little too ambitious,” the official added.
Micron said the first phase, which includes 500,000 square feet of plant cleanroom space, will be operating in early 2025. The company, which began construction in October 2023, said it expects Phase 2 to include construction of A. The facility has the same scale as Phase 1.
The new facility said it will focus on converting the wafer into ball grid array (BGA) integrated circuit packages, memory modules and solid state drives.
Also Read: Micron to deploy first Indian chips from Sanand Unit in 2025
Last month, Amit Agrawal, project director for TATA projects, said 60% of the work was completed and the rest would be completed by the end of this year.
He added that if the TATA project hand over the facility to Micron by December 2025, the American company will make a final call to begin production.
Under the memorandum signed with the Gujarat government in June 2023, Micron had proposed to establish a $2.755 billion semiconductor assembly and testing facility in Sanand. At the time, the company said the project would create nearly 5,000 direct jobs and 15,000 more indirect jobs.
