Vedanta to Finalise Location for $20 Billion Chip, Display Plant by Mid-June, Confirms Chairman Anil Agarwal

Its chairman, Anil Agarwal, said Wednesday that Vedanta will finish the site for its $20 billion (about Rs 1.55273 crore) semiconductor and display plants in India by mid-June and will have its first chip producer ready in two years.

Oil and minerals giant Vedanta said in February it would diversify its chip manufacturing business and announced plans to form a joint venture with Taiwan’s Foxconn to support Prime Minister Narendra Modi’s campaign to make India a semiconductor manufacturing hub.

Vedanta has a total planned investment spending of $20 billion for two separate chip and display manufacturing units.

“Foxconn is our technical partner. We may not take a venture capital partner in Fabus,” Agarwal told Reuters in an interview in Davos. Adding that the Apple contract manufacturer will take technical responsibility for the process from providing technology to manufacturing semiconductors.

Vedanta is seeking incentives from the Modi government and is also in talks with several Indian states over the location of the unit.

Agarwal said on the sidelines of the annual World Economic Forum that the first phase of the Vedanta project will require an investment of $2 billion (about Rs 15,523 crore).

Private equity wanted to be a part of the semiconductor expansion in India and there was no shortage of funds, he said, adding that Vedanta had not held talks with private equity firms.

India estimates that the semiconductor market will reach $63 billion (about Rs 4,89,004 crore) by 2026, compared to $15 billion (approx Rs 1,16431 crore) in 2020.

“You have to create another Taiwan in India,” Agarwal said, noting that India would have to focus on bringing the entire semiconductor ecosystem locally in order to become a global power.

The Indian government said it will expand incentives beyond an initial plan of $10 billion (about Rs 77,621 crore) for those investing in semiconductor manufacturing, as it aims to become a major player in the global supply chain for chips.

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