Categories: Agreements

Vedanta And Foxconn to Invest 1.54 Lakh Crore In Gujrat For Chip Manufacturing

The Anil Agarwal-led-Vedanta Limited and Foxconn Group will invest more than Rs 1.54 lakh crore to set up an semiconductor ecosystem in Gujarat. The oil-to-metals conglomerate said Vedanta Displays Limited will set up a Display Fab Unit with an investment of Rs 94500 crore and Vedanta Semiconductors Limited will set up an integrated Semiconductor Fab Unit and OSAT (Outsourced Semiconductor Assembly and Test) facility with investment of Rs 60000 crore.

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What They Said:

“Thus two MoUs, together, will bring in an investment of more than Rs 1.54 lakh crore and generate around 1 lakh new employment opportunities in the state,” said the company in a statement. Vedanta and Foxconn Group entered into two Memorandums of Understanding [MoUs] with the Government of Gujarat on September 13, 2022.  The company said Vedanta and Taiwan-based Foxconn Group will work closely with the state government to establish high-tech clusters with requisite infrastructure, including land, semiconductor grade water, high quality power, logistics, and a skill ecosystem.”It is a step in the right direction for Gujarat helping towards building a one trillion-dollar digital national economy,” said Electronics and Information Technology minister Ashwini Vaishnaw. Brain Ho from Foxconn said the decision of finalising Gujarat for the prospective Semiconductor and Display fab units was a culmination of extensive analysis of possible project sites in India and across the world, with sectoral experts weighing a multiplicity of factors before the decision was made.

How It Will Be Done:

The proposed semiconductor manufacturing fab unit will operate on the 28nm technology nodes with wafer size 300mm; and the display manufacturing unit will produce Generation 8 displays catering to small, medium and large applications. To make India as global semiconductor chip manufacturing, the government has notified four schemes with an outlay of Rs 76,000 crore. “Gujarat has had a long history of having an investor-friendly atmosphere and a robust manufacturing base. Additionally, the recent notified semiconductor policy with excellent incentives on capital expenditure, land, water and power has made Gujarat a very compelling choice for his company huge foray into the semiconductor manufacturing sector,” said Vedanta Group Chairman Anil Agrawal.

Why Semiconductor Manufacturing Is Important:

Semiconductors are the brains of modern electronics, enabling technologies critical to economic growth, national security, and global competitiveness. Semiconductors have driven advances in communications, computing, health care, military systems, transportation, clean energy, and countless other applications. And they are giving rise to new technologies that hold the promise to transform society for the better, including brain-inspired computing, virtual reality, the Internet of Things, energy-efficient sensing, automated devices, robotics, and artificial intelligence. Semiconductors’ greatest potential lies ahead.

India’s Approach:

With the recent Rs 76,000-crore incentive package, the country has taken a significant step toward bringing semiconductor and display fab manufacturing here. Along with goals of creating 100 million manufacturing jobs by 2022, increasing the sector’s contribution to GDP to 25% by 2025, and ensuring an annual growth rate of 12-14 percent, the government’s ‘Make-in-India’ scheme is well-thought-out and a step in the right direction. India’s ultimate ambition today is to undoubtedly become a major player in the global semiconductor supply chain. While India has previously expressed interest in growing semiconductor production, this is the first time that such a robust plan is being put into action.

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Piyush Shukla

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