Micron Technology, Inc. (MU.US) has begun commercial production at India's first semiconductor assembly and test facility, with chip capacity expected to expand to hundreds of millions of units next year.

Micron Technology, Inc. (MU.US) CEO Sanjay Mehrotra said the company's semiconductor assembly and test facility in Sanand, Gujarat, India, has begun commercial production to meet growing demand for memory chips driven by artificial intelligence (AI). The Sanand facility is Micron Technology, Inc.'s first semiconductor assembly and test plant in India. The plant was built with a joint investment of approximately $2.75 billion by Micron Technology, Inc. and Indian government partners. Phase one has a designed cleanroom space of 500,000 square feet (about 46,452 square meters), making it one of the largest single-story assembly and test cleanrooms in the world. Micron Technology, Inc. has delivered its first batch of India-made memory modules to Dell Technologies, Inc. Class C (DELL.US) for laptops produced for the Indian market. The Sanand facility processes advanced DRAM and NAND wafers from Micron Technology, Inc.'s global manufacturing network into finished memory and storage products. Micron Technology, Inc. said in a statement that the plant is expected to assemble and test tens of millions of chips in 2026 and ramp capacity to hundreds of millions of units in 2027. For Micron Technology, Inc., expanding traditional assembly and test operations in India complements the company's planned advanced manufacturing and packaging capabilities in the United States, further strengthening its global assembly and test network. Globally, the Sanand facility helps diversify the supply chain. Traditionally, memory assembly and test operations have been concentrated in East and Southeast Asia. By establishing a plant in India, Micron Technology, Inc. has added another production base for its back-end packaging, which is expected to improve the resilience of its supply chain as AI adoption spreads and demand for memory chips grows. At the same time, the plant reflects a broader transformation underway in India, from a center focused mainly on semiconductor design and software to participation in hardware production. Although the facility itself does not manufacture wafers, its assembly, testing and other key downstream processes are crucial to building a broader semiconductor ecosystem. Such operations typically foster the development of supplier networks in chemicals, materials, precision equipment and logistics, thereby laying an industrial foundation for a more complete value chain.