Will Micron Invest Rs 13,000 Crore in Gujarat for Chip Manufacturing?
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Synopsis
Micron is making a significant move in Gujarat's tech landscape. With an investment of Rs 13,000 crore for a state-of-the-art semiconductor manufacturing facility, this initiative is expected to transform the local economy and create high-skilled jobs. Stay tuned as we delve into the implications of this major investment.
Key Takeaways
- Micron's investment of Rs 13,000 crore in Gujarat.
- New SEZ facility spread over 37.64 hectares.
- Significant reforms in SEZ regulations to attract more investments.
- Potential to create high-skilled employment opportunities.
- Focus on enhancing India's semiconductor manufacturing ecosystem.
New Delhi, June 9 (NationPress) Micron Semiconductor Technology India Pvt Ltd (MSTI) is set to invest approximately Rs 13,000 crore to create an SEZ facility in Sanand, Gujarat, covering an area of 37.64 hectares dedicated to the manufacturing of semiconductors and electronic components, as announced by the government on Monday.
The Hubballi Durable Goods Cluster (Aequs Group) will also establish its SEZ in Dharwad, Karnataka, spanning 11.55 hectares, with an estimated investment of Rs 100 crore for the production of electronics components.
The Commerce Ministry has initiated significant reforms in the Special Economic Zones (SEZ) regulations to cater to the unique requirements of the semiconductor and electronics manufacturing sectors.
Recognizing that manufacturing in these fields is capital-intensive, import-reliant, and involves prolonged periods before achieving profitability, the government has made rule modifications to encourage groundbreaking investments and enhance production in these advanced technology areas.
Following the amendments to Rule 5 of the SEZ Rules, 2006, an SEZ established exclusively for semiconductor or electronic component manufacturing will now only need a minimum contiguous land area of 10 hectares, down from the previous 50 hectares.
Additionally, the amendment to Rule 7 permits the Board of Approval for SEZs to waive the requirement for SEZ land to be free of encumbrances in cases where it is mortgaged or leased to the Central or State Government or their authorized agencies.
The revised Rule 53 will allow the value of goods provided free-of-cost to be included in Net Foreign Exchange (NFE) assessments, utilizing the relevant customs valuation rules.
Moreover, amendments to Rule 18 enable SEZ units in the semiconductor and electronics component manufacturing sector to also supply goods domestically into the Domestic Tariff area after settling the applicable duties.
“These changes will stimulate high-tech manufacturing in the nation, foster the growth of the semiconductor ecosystem, and generate high-skilled employment opportunities,” stated the ministry.
These amendments have been officially announced by the Department of Commerce. Following this, the Board of Approval for SEZs has granted approval for the proposals submitted by Micron Semiconductor Technology India Pvt Ltd (MSTI) and Aequs Group.
Point of View
The investment by Micron Semiconductor Technology India Pvt Ltd is a pivotal development. It not only signifies a commitment to enhancing India's semiconductor manufacturing capabilities but also reflects the government's proactive approach in reforming SEZ regulations. This initiative is likely to foster technological advancements and job creation, aligning with the nation's vision for economic growth.
NationPress
09/06/2025
Frequently Asked Questions
What is the investment amount by Micron in Gujarat?
Micron Semiconductor Technology India Pvt Ltd is investing approximately Rs 13,000 crore in Gujarat.
Where will the Micron SEZ facility be located?
The SEZ facility will be established in Sanand, Gujarat.
What is the area of the SEZ facility?
The SEZ facility will cover an area of 37.64 hectares.
What are the amendments made to SEZ rules?
The amendments include reducing the minimum land requirement and allowing SEZ units to supply domestically after paying duties.
What is the expected impact of these reforms?
These reforms are expected to boost high-tech manufacturing and create high-skilled jobs in the country.
