New Delhi:- The government will break ground on its first semiconductor assembly plant next month and start producing the first domestically produced microchips by the end of 2024, the Financial Times reported Wednesday.

IT Minister Ashwini Vaishnav said Micron Technology will begin construction of a $2.75 billion chip assembly and test facility in Gujarat in August, the newspaper reported.

Last month, Micron signed a memorandum of understanding with the government to build the country's first semiconductor factory. 

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Micron announced last week that it would invest up to $825 million (about $6.76 billion) in the facility. The total investment will be US$2.75 billion, with support from the Indian central government and the state of Gujarat. The plant will be built in Sanand near Ahmedabad, Gujarat.

Micron said construction of the new facility in Gujarat is expected to start in 2023 and the first phase of the project is expected to be operational by the end of 2024. The second phase of the project is expected to begin in the late 2010s. Together, the two phases will create up to 5,000 new direct jobs for Micron.

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Micron Technology's plan comes as the White House encourages U.S. chip companies to invest in India. U.S. officials told Reuters last month that talks about potential further investments were still ongoing. 

U. S. President Joe Biden wants to better integrate the U.S. economy with that of the world's largest democracy while reducing the risks for domestic companies doing business in China, U.S. officials said.

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The Tech Giant will get its plant ready in India by 2024 and it will soon start manufacturing the chipset that will be provided to India as well as all over the World.

The Investment that Indian Government made in the company will not have any ownership of the company as they have given all the rights to the company itself.