Vedanta-Foxconn JV sign MoUs with Govt of Gujarat to Set up Semiconductors & Display Fab Units
14 December 2022: Vedanta Group has signed two Memorandum of Understanding (MoUs) with the 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 envisages a total investment of Rs 1,54,000 crore. The units will provide employment to around 1 lakh people, according to the company’s statement.
The MoU signing ceremony was attended by Ashwini Vaishnav, Union Minister; Bhupendrabhai Patel, Gujarat Chief Minister; Sanjay Prasad, Principal Secretary; Anil Agarwal, Vedanta Group Chairman; Akarsh Hebbar, Vedanta’s Global Managing Director, Display and Semiconductors; Brian Ho, VP, Foxconn Semiconductor Group and other dignitaries.
Vedanta Group is foraying into the manufacture of semiconductors and display fabs. Vedanta has partnered with Foxconn for semiconductors manufacturing. The initial investment in the project will be $2 billion, which will go up to $20 billion. They have formed a Joint Venture company called Vedanta Semiconductors Ltd., for setting up semiconductor Fabs in India.
The JV had submitted their application for setting up of Unit in one of the sites in Telangana, Gujarat and Maharashtra. However, the Vedanta JV in their final submissions has informed that they had decided Dholera Industrial City in Gujarat as the final location for their proposal.
The proposed semiconductor manufacturing fab unit will operate on the 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.
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.
Commenting on the MoU, Gujarat CM Bhupendrabhai Patel said, “We are proud that the Vedanta-Foxconn JV has selected Gujarat State for their semiconductor project. We will provide all help to 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.”
On this occasion, Union Minister for Electronics and Information Technology Ashwini Vaishnav, said “The project is in line with Prime Minister Narendra Modi’s vision for achieving self-reliance in the field of semiconductor manufacturing. Gujarat plant will go a long way in helping build $1 trillion digital national economy.”
In a statement, Vedanta Chairman Anil Agarwal, said “We are delighted to announce that Gujarat will be the location for our display and semiconductor fab ventures. I hope that India’s upcoming, cutting-edge electronics ecosystem will thrive, with every state benefitting to develop their electronic manufacturing hubs.”
In his message, Brian Ho, VP, of Foxconn Semiconductor Group, said, “We applaud the efforts made by the Government of Gujarat to attract semiconductor development. The government’s active and strong support increases confidence in setting up a semiconductor factory. We look forward to working with our partners and the Gujarat leadership to further enhance the infrastructure required to cater to the ambitious semiconductor project”.
