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The Gujarat government is set to sign a Memorandum of Understanding (MoU) with Micron Technology, a leading semiconductor chip making company based in the United States, on Wednesday.

The signing ceremony will take place in the presence of the State Chief Minister Bhupendra Patel. The MoU aims to establish a semiconductor Assembly and test facility at Sanand in the Ahmedabad district.

Micron Technology had previously announced its plans to set up a semiconductor assembly and test plant in Gujarat on June 22. The total investment for this venture is estimated to be USD 2.75 billion (approximately Rs 22,540 crore).

The joint statement issued by Prime Minister Narendra Modi and US President Joe Biden acknowledged the signing of the MoU on Semiconductor Supply Chain and Innovation Partnership as a significant step in coordinating the semiconductor incentive programs of both countries.

This collaboration is expected to boost commercial opportunities, research initiatives, talent development, and skill enhancement. 

As part of this collaboration, Micron Technology, Inc. has committed to investing up to $825 million in building a new semiconductor assembly and test facility in India, with support from the Indian government. The combined investment of $2.75 billion is projected to create around 5,000 direct jobs and offer 15,000 community job opportunities over the next five years.

The joint statement also highlighted other notable initiatives in the semiconductor industry. Lam Research, a global leader in semiconductor manufacturing equipment, has proposed to train 60,000 Indian engineers through its Semiverse Solution virtual fabrication platform, aiming to accelerate India's semiconductor education and workforce development goals. Additionally, Applied Materials, Inc. has announced a $400 million investment to establish a collaborative engineering center in India.