L&T Appointed Contractor for Micron's $2.75 Billion Sanand Chip Facility

US memory chipmaker Micron Technology has officially appointed Larsen & Toubro (L&T) as the general contractor for the second phase of its semiconductor assembly and test facility in Sanand, Gujarat. This appointment is a critical step in Micron's $2.75 billion investment, which represents one of the most significant foreign direct investments in India's semiconductor sector to date.

L&T will manage the engineering, procurement, and construction for Phase 2, which is designed to significantly scale Micron's manufacturing capacity. The Sanand facility, which has already commenced commercial production in its first phase, is expected to produce tens of millions of memory units in 2026, with plans to reach hundreds of millions annually by 2027. This expansion is a cornerstone of the India Semiconductor Mission (ISM).

The project is bolstered by the Union Cabinet's recent approval of the India Semiconductor Mission 2.0 (ISM 2.0), which includes a fiscal outlay of ₹1.28 lakh crore. This policy framework aims to establish an end-to-end chip ecosystem, supporting not just assembly and testing, but also the domestic production of specialty chemicals, ultrapure water, and industrial gases. By integrating local construction expertise with global manufacturing standards, the Sanand facility is set to become a vital node in the global semiconductor supply chain.