India powers iPhones: Micron may start supplying India-made chips to local Apple factories

Micron Technology, a major player in the global memory and storage market, is contemplating a significant move that could reshape India’s tech landscape.

The company is looking at the possibility of providing locally manufactured chips from its upcoming plant in Gujarat to one of its major clients, Apple. Apple may soon start using these India-made chips in the devices it produces in India. This strategic move aims to streamline the supply chain for iPhones manufactured in India.

Micron is currently in the process of setting up an an assembly test marking and packaging (ATMP) plant in Sanand, Gujarat, marking a rather pivotal moment for India and its semicon mission. Like all ATMP plants, this facility will play a crucial role in the conversion of silicon wafers into fully functional chips, ready to power electronic devices.

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The process involves intricate steps such as slicing silicon wafers, packaging chips securely, encasing them in resin, and rigorous testing to ensure quality.

Currently, Apple relies on imported chips for its iPhone production in India. However, Micron’s plan could change this scenario, with a portion of the chips produced in India destined to serve Micron’s clients directly within the country.

The Sanand plant is on track to start the production of chips by December and will be focusing on producing ball grid arrays (BGA), integrated circuit packages, memory modules, and solid-state drives.

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Micron has invested about $875 million into the facility at Sanand, and has further financial support from both the Gujarat state government and the PM Narendra Modi-led central government.

The chip-making facility is set to generate significant employment opportunities, with an estimated 5,000 direct jobs and 15,000 community job opportunities anticipated over the next five years.

This initiative builds upon Micron’s earlier announcement in June 2023, when the company disclosed its plans to invest up to $825 million in Gujarat for chip assembly and testing. With backing from the Centre and Gujarat government, the total investment in the factory is projected to reach $2.75 billion.

Construction of the facility commenced in 2023, with the first phase slated for completion by mid-2024. The production of finished chips is scheduled to kick off by December 2024.

Moreover, a subsequent phase of the project, expected to commence in the latter half of the decade, holds the potential to double the factory’s output, further cementing Micron’s footprint in India’s burgeoning tech sector.