Vedanta To Finalize $20 Billion Chip Unit Site By Next Month
Friday, 27 May 2022, 21:01 IST
Vedanta will finalize a location for its $20 billion semiconductor and display plants in India by next month and expects to roll out the first chip product in two years. The oil-to-metals conglomerate is in talk with several Indian states on the unit's location. Vedanta has a total planned investment outlay of $20 billion for two separate units for chip and display manufacturing.
"You have to create another Taiwan in India. Foxconn is our technical partner, we may not take equity partner for the fab", Anil Agarwal, Chairman said Reuters on the sidelines of the annual World Economic Forum, noting that India will have to focus on bringing the entire semi-conductor ecosystem locally for it to be a global powerhouse and Taiwan based Foxconn will have technical responsibility for the operation, from providing the tech to making semiconductors. He also said that private equity wants to be part of India's semi-conductor expansion and there was no shortage of funds.
The first phase of Vedanta's project will entail an investment of $2 billion. Speaking on the opportunity for manufacturing semiconductors in India, Anil told Mint earlier that "India needs to import $15 billion worth of semiconductors. It's because of the shortage of semiconductor that we haven't been able to run our factories at 100 percent. We are manufacturing glass and optical fibre. So, it was natural for us to move into semiconductors".
The Indian government had approved $10 billion incentive plan to attract semi-conductor and display manufacturers, as part of a deepening push to establish the country as a global electronics production hub. Under the plan, India's government will extend fiscal support of up to 50 percent of a project's cost to eligible display and semiconductor fabricators. The Indian government have said, it will expand incentives beyond an initial $10 billion plan for those investing in semi-conductor manufacturing, as it aims to become a key player in the global supply chain for chips.
"You have to create another Taiwan in India. Foxconn is our technical partner, we may not take equity partner for the fab", Anil Agarwal, Chairman said Reuters on the sidelines of the annual World Economic Forum, noting that India will have to focus on bringing the entire semi-conductor ecosystem locally for it to be a global powerhouse and Taiwan based Foxconn will have technical responsibility for the operation, from providing the tech to making semiconductors. He also said that private equity wants to be part of India's semi-conductor expansion and there was no shortage of funds.
Private equity wants to be part of India's semi-conductor expansion and there was no shortage of funds
The first phase of Vedanta's project will entail an investment of $2 billion. Speaking on the opportunity for manufacturing semiconductors in India, Anil told Mint earlier that "India needs to import $15 billion worth of semiconductors. It's because of the shortage of semiconductor that we haven't been able to run our factories at 100 percent. We are manufacturing glass and optical fibre. So, it was natural for us to move into semiconductors".
The Indian government had approved $10 billion incentive plan to attract semi-conductor and display manufacturers, as part of a deepening push to establish the country as a global electronics production hub. Under the plan, India's government will extend fiscal support of up to 50 percent of a project's cost to eligible display and semiconductor fabricators. The Indian government have said, it will expand incentives beyond an initial $10 billion plan for those investing in semi-conductor manufacturing, as it aims to become a key player in the global supply chain for chips.
