Vedanta Group has chosen Gujarat as the location for its semiconductor manufacturing plant, and has signed two Memorandums of Understanding (MoUs) with the Gujarat government to establish a semiconductor fab unit, a display fab unit, and a semiconductor assembling and testing unit in the state’s Ahmedabad district.
The proposed semiconductor manufacturing fab unit will use 28nm technology nodes, while the proposed display manufacturing unit will make Generation 8 displays for small, medium, and large applications. Vedanta intends to invest a total of Rs 1,54,000 crore in the project, which will employ around 1 lakh people.
Earlier this year, Vedanta formed a joint venture with Foxconn and applied for the Indian government’s semiconductor manufacturing scheme. Vedanta will control 60% of the joint venture, while Foxconn will possess 40%. In the next two years, the JV plans to establish a semiconductor manufacturing unit.
“We are delighted to announce that Gujarat will be the location for our display and semiconductor fab ventures. The state is well known globally for being a manufacturing hub and I hope that India’s upcoming, cutting-edge electronics ecosystem will thrive, with every state benefitting to develop their electronic manufacturing hubs.
We are privileged to take one step further in supporting Prime Minister Modi’s vision of Aatmanirbhar Bharat in this strategic sector,” stated Vedanta Chairman Anil Agarwal following the signing of the MoUs.
Despite the fact that the Ministry of IT and Electronics and ISM have yet to approve the first round of applications, Union Minister for Electronics and Information Technology Ashwini Vaishnav was present for the MoU signing and stated, “The project is in line with Prime Minister 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 a $1 trillion digital national economy.”
The Gujarat government launched the Semiconductor Policy 2022-27 in July of this year, under which the government promised to offer large subsidies on power, water, and land prices to individuals interested in investing in semiconductors or display fabrication manufacturing in the state.
Gujarat Chief Minister Bhupendrabhai Patel stated, “We are extremely proud and happy that the Vedanta-Foxconn JV has selected the industrial state of Gujarat for their semiconductor plant. This is a huge investment coming on the day when we complete 1 year in office which is also a testimony to the policy stability and policy support coupled with good governance & excellent infrastructure facilities existing in Gujarat. We will provide all help to the joint venture so that the plant can start its operations soon.”
As semiconductors and displays are crucial to establishing India as an electronics hub, the investments will assist in attracting suppliers and device assemblers to establish a foundation in India. In 2021, the Indian semiconductor industry was valued at $27.2 billion, and it is predicted to rise at a high CAGR of about 19% to $64 billion by 2026.
ISMC previously struck an agreement with the Karnataka government to establish a 65nm analogue semiconductor fabrication plan in the state.