Micron Selects L&T for Phase Two of $2.75 Billion Sanand Semiconductor Unit

Micron has selected Larsen & Toubro as the general contractor for the second phase of its assembly, testing, marking and packaging unit in Sanand, Gujarat, advancing one of India’s most closely watched semiconductor manufacturing-linked projects.

The Sanand facility is part of Micron’s $2.75 billion India investment and is central to the country’s push to build domestic semiconductor assembly and packaging capability. The latest development places L&T in charge of phase-two construction execution, while Singapore-based Meinhardt has also been linked to the project’s design work. Turner International is expected to be involved in project consultancy.

The move follows reported operational friction in the first phase, where Tata Projects had been handling execution. People aware of the matter said delays in the first phase contributed to Micron’s decision to change the general contractor for the next stage. The shift underlines the operational complexity of semiconductor infrastructure, where construction timelines, cleanroom standards, utilities, process-readiness and equipment move-in schedules all have to align with precision.

Micron’s Sanand unit is an ATMP facility, which means it is focused on the downstream part of the semiconductor value chain: assembling chips, testing them, marking them, and packaging them for use in electronics and computing systems. While wafer fabrication remains the most capital-intensive part of the chip industry, ATMP capacity is a critical entry point for countries building semiconductor ecosystems because it creates manufacturing jobs, supplier relationships, quality systems, and operational know-how.

The choice of L&T brings one of India’s largest engineering and construction groups deeper into a semiconductor project that is strategically tied to the India Semiconductor Mission. For India, the Sanand facility is not an isolated plant; it is meant to demonstrate whether global chip companies can build high-standard semiconductor operations in the country with local project execution, policy support, and supplier participation.

The project has also drawn attention because India is trying to attract a broader semiconductor supply chain, including packaging, materials, equipment support, design services, and electronics manufacturing. Successful execution of phase two would strengthen confidence in India’s ability to handle complex semiconductor infrastructure at scale.

Micron’s contractor switch also illustrates a practical reality of industrial policy: incentives and approvals are only the starting point. Delivery depends on construction discipline, experienced project partners, component supply, workforce readiness, and the ability to meet global semiconductor operating standards. Sanand’s next phase will be watched as closely for execution quality as for investment size.

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