Micron Technology (MU.US) opens India's first semiconductor packaging testing plant to commercialize chip production capacity, which is expected to expand to hundreds of millions of chips next year

The Zhitong Finance App learned that Sanjay Mehrotra, CEO of Micron Technology (MU.US), said that the company's semiconductor packaging and testing plant in Sanand, Gujarat, India has begun commercial production to meet the growing demand for memory chips driven by artificial intelligence (AI).

According to reports, the Sanand plant is Micron Technology's first semiconductor packaging and testing plant in India. The plant was built with a joint investment of about 2.75 billion US dollars by Micron Technology and Indian government partners. The first phase of the design clean room space reached 500,000 square feet (about 46,452 square meters), which means that it has one of the largest single-layer packaging test cleanrooms in the world. Micron has delivered the first batch of memory modules made in India to Dell Technologies (DELL.US) for use in its laptops for the Indian market.

The Sanand plant processes advanced DRAM and NAND wafers from Micron's global manufacturing network into finished memory and storage products. Micron said in a statement that the plant is expected to package and test tens of millions of chips in 2026 and increase production capacity to hundreds of millions in 2027.

For Micron Technology, expanding its traditional packaging testing business in India complements the company's plans to develop advanced manufacturing and packaging capabilities in the US, further strengthening the company's global packaging testing network. Globally, the Sanand plant helps diversify the supply chain. Traditionally, the memory packaging and testing business was concentrated in East and Southeast Asia. By setting up a factory in India, Micron added a new production base for its back-end packaging, which is expected to increase the resilience of its supply chain as AI becomes more popular and demand for memory chips grows.

At the same time, the plant reflects India's ongoing broader transformation, from a center focused on semiconductor design and software to participation in hardware production. Although the plant itself does not manufacture wafers, key downstream processes such as packaging and testing are critical to building a broader semiconductor ecosystem. Such businesses often promote the development of supplier networks for chemicals, materials, precision equipment, and logistics, thereby laying the foundation for a more complete value chain.