Vedanta announces $19bn semiconductor manufacturing project in Gujarat

Vedanta has signed two memoranda of understanding (MoUs) with the Gujarat government to set up a semiconductor manufacturing project with a total investment of Rs 1,54,000 crore ($19.3 billion).

To be set up in the Ahmedabad district of the state, the semiconductors and display fab units that are part of the chip manufacturing project in India are expected to create employment for nearly 100,000 people.

Vedanta will build a semiconductor fab unit, a display fab unit, and a semiconductor assembling and testing unit as part of the project.

The semiconductor manufacturing plant will be set up by a joint venture of Vedanta and Taiwan-based Foxconn with a stake of 60% and 40%, respectively.

It is planned to be built over the next two years and will operate on the 28nm technology nodes.

The display manufacturing unit will make Generation 8 displays for small, medium, and large applications.

Vedanta announces $19bn semiconductor manufacturing project in Gujarat. Photo courtesy of Cristian Ibarra from Pixabay.

Anil Agarwal — Vedanta Chairman, commenting on the semiconductor manufacturing project in Gujarat, said: “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 aatm nirbhar Bharat in this strategic sector.”

The semiconductor manufacturing project is expected to help Gujarat to find a place on the global silicon map, by attracting electronics ecosystem players across the value chain, including manufacturers of highly advanced and sensitive equipment, high purity gases, chemicals, wafers, photomasks, and equipment service providers.

Commenting on the semiconductor manufacturing project in Gujarat, Chief Minister of Gujarat Bhupendrabhai Patel said: “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. 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.”