Vedanta-Foxconn JV Selects Gujarat for Rs.1.54 Lakh Crore Investment for Semiconductors Industry
14 September, 2022: In a major step towards making India self-sufficient in the critical area of semiconductors and displays in line with Prime Minister Shri Narendra Modi’s vision to make India aatmanirbhar in key futuristic technologies, Vedanta has signed 2 MoUs with Govt. of Gujarat to set up a semiconductor fab unit, a display fab unit and a semiconductor assembling and testing unit in Ahmedabad District.
The project will attract electronics ecosystem players across the value chain entailing manufacturers of highly sophisticated and sensitive equipment, materials (high purity Gases, chemicals, wafers, photomasks), equipment service providers etc. and will put the state of Gujarat on the global silicon map. The project envisages total investment of Rs.1,54,000 crore, and it will provide employment to around 1 lakh people.
The proposed semiconductor manufacturing fab unit will operate on 28nm technology nodes and the display manufacturing unit will produce Generation 8 displays catering to small, medium and large applications. Vedanta will hold 60% of the equity in the JV while Foxconn will own 40%. The JV will look at setting up a semiconductor manufacturing plant in the next two years.
Gujarat CM Bhupendra Patel said, “We are extremely proud and happy that the Vedanta-Foxconn JV has selected Gujarat for their semiconductor plant. We will provide all help to the joint venture so that the plant can start its operations soon. We are determined to make our country more self-sufficient in tech and curb our reliance on imports from other countries. We sincerely hope that the hub will be the beginning of a bright future and attract investment from other multinational companies down the line.”
He added that the Gujarat Government has created a world-class industrial zone, with excellent infrastructure facilities to help strategic investments such as the semiconductor plant, to mitigate the gestation period of project timelines. “The project will be met with red carpet in Gujarat instead of any red tapism,” he remarked.
On this occasion, Union Minister for Electronics and Information Technology Ashwini Vaishnav, said “The project is in line with Hon. Prime Minister Shri Narendra Modi’s vision for achieving self-reliance in the field of semiconductor manufacturing. I congratulate Vedanta and Foxconn for taking this initiative and bringing the semiconductor plant to India. The Gujarat plant will go a long way in helping build $1 trillion digital national economy.”
Semiconductors and displays are critical to establishing India as an electronics hub and will help attract suppliers and device assemblers to setup base in India. The Indian semiconductor market was valued at $27.2 billion in 2021 and is expected to grow at a healthy CAGR of nearly 19% to reach $64 billion in 2026.
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