Micron Technology (MU.US) launches commercial production at its first semiconductor packaging and testing plant in India, with chip capacity expected to expand to several hundreds of millions next year

According to Golden Ten Data, Micron Technology (MU.US) CEO Sanjay Mehrotra stated that the company’s semiconductor packaging and testing facility in Sanand, Gujarat, India, has begun commercial production to meet the growing demand for memory chips driven by artificial intelligence (AI).

It is reported that the Sanand facility is Micron Technology's first semiconductor packaging and testing factory in India. The plant was built with a joint investment of approximately $2.75 billion from Micron Technology and Indian government partners. The first phase covers a cleanroom area of 500,000 square feet (about 46,452 square meters), making it one of the largest single-floor packaging and testing cleanrooms in the world. Micron Technology has delivered the first batch of locally manufactured memory modules in India to Dell Technologies (DELL.US), to be used in laptops produced for the Indian market.

The Sanand facility processes advanced DRAM and NAND wafers from Micron Technology’s global manufacturing network into finished memory and storage products. In a statement, Micron Technology announced that the facility is expected to package and test tens of millions of chips in 2026, and increase its capacity to hundreds of millions by 2027.

For Micron Technology, expanding its traditional packaging and testing business in India complements the company’s plans to develop advanced manufacturing and packaging capabilities in the United States, further strengthening its global packaging and testing network. Globally, the Sanand facility helps diversify the supply chain. Traditionally, the memory packaging and testing business has been concentrated in East and Southeast Asia. By establishing a factory in India, Micron Technology has added a new production base for its backend packaging. With the popularization of AI and the growing demand for memory chips, this is expected to enhance the resilience of its supply chain.

At the same time, this facility reflects a broader transformation underway in India — shifting from a center focused on semiconductor design and software toward participation in hardware manufacturing. Although the factory itself does not manufacture wafers, its key downstream processes such as packaging and testing are crucial for building a broader semiconductor ecosystem. Such operations typically foster the development of supplier networks for chemicals, materials, precision equipment, and logistics, thereby laying the industrial foundation for a more complete value chain.