US-based semiconductor manufacturing company Micron Technology is set to start construction this week on its semiconductor testing and assembly plant in the Indian state of Gujarat.

The plant is expected to become operational by next year and is being set up with a total projected investment of $2.75bn.

Of this total investment, Micron itself will provide $825m, with the remaining amount to be funded as subsidies, reported the Economic Times.

India's Minister for Railways, Communications and Electronics and IT Ashwini Vaishnaw told the publication: “It’s a very significant proposal, and within a very short time frame of just a few months - land allocation, all the project agreements were signed and now the actual construction work will begin.

“The world will take notice of the speed at which the project has been executed and it will bring in a significant change in the way people will evaluate India in the future.

“We can expect the first made-in-India chips to be rolled out by December 2024.”

This project falls under the India Semiconductor Mission division and is the first proposal approved by the Indian government under this agency. The agreement was officially signed during Indian Prime Minister Narendra Modi’s visit to the US in July earlier this year.

Construction of the plant is set to be completed in a phased manner. Phase one is set to feature 500,000ft² of cleanroom space.

Micron anticipates that phase two, which will entail the development of another facility of a similar scale to phase one, will begin onwards from 2025.

Over the coming several years, the project is estimated to generate up to 5,000 direct jobs with Micron and 15,000 community jobs.