Vedanta-Foxconn to set up Semiconductor fab unit in Ahmedabad
Project envisages total investment of more than Rs 1,54,000 crore
Biznextindia : Global metal, mining and energy conglomerate Vedanta has signed two Memorandum of Understanding (MoUs) with the Government of Gujarat to set up a semiconductor fab unit, a display fab unit, and a semiconductor assembling and testing unit in Ahmedabad district of the state.
The MoU signing ceremony was attended by Union Minister Ashwini Vaishnav, Gujarat Chief Minister Bhupendrabhai Patel, Principal Secretary Sanjay Prasad, Vedanta Group Chairman Anil Agarwal, Vedanta’s Global Managing Director, Display and Semiconductors, AkarshHebbar and a host of other dignitaries.
The project will attract electronics ecosystem players across the value chain entailing manufacturers of highly sophisticated and sensitive equipment, materials (high purity Gases, chemicals, wafers, photomasks), equipment service providers etc., and will put the state of Gujarat on the global silicon map. The project envisages total investment of Rs 1,54,000 crore, and it will provide employment to around 1 lakh people.
The proposed semiconductor manufacturing fab unit will operate on the 28nm technology nodes and the display manufacturing unit will produce Generation 8 displays catering to small, medium and large applications. Vedanta will hold 60% of the equity in the JV while Foxconn will own 40%. The JV will look at setting up a semiconductor manufacturing plant in the next two years.
History gets made! 🇮🇳 Happy to announce that the new Vedanta-Foxconn semiconductor plant will be set up in #Gujarat. Vedanta’s landmark investment of ₹1.54 lakh crores will help make India’s #Atmanirbhar Silicon Valley a reality. (1/4)
— Anil Agarwal (@AnilAgarwal_Ved) September 13, 2022
Speaking on the signing of the MoUs, Vedanta Chairman Mr. Anil Agarwal, 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 aatmnirbhar Bharat in this strategic sector.”
The decision to set up the project in Gujarat comes after Vedanta and Foxconn announced in February that they will form a joint venture company in India. Vedanta has a presence in electronics and technology business through group companies Avanstrate Inc. and Sterlite Technologies. Hon Hai Technology Group (“Foxconn”) (TWSE:2317) is the world’s largest electronics manufacturer. Hon Hai is also the leading technology solution provider, and it continuously leverages its expertise in software and hardware to integrate its unique manufacturing systems with emerging technologies.
Mr. Brian Ho, VP, Foxconn Semiconductor Group, also present at the event, said, “I am delighted that the semiconductor plant will come up in the industrial state of Gujarat. We applaud the efforts made by the Government of Gujarat, home of Prime Minister Narendra Modi, to attract semiconductor development and upgrade government efficiency. Located in the western part of India, Gujarat has been recognized for its industrial development, green energy, and smart cities. The improving infrastructure and the government’s active and strong support increases confidence in setting up a semiconductor factory. We look forward to working with our partners and the Gujarat leadershipto further enhance the infrastructure required to cater to the ambitious semiconductor project”.
The broad plans for a semiconductor unit in India were announced after the COVID-19 pandemic upended global supplies of crucial electronic components used in everything from smartphones to cars. India has vowed to spend $30 billion to overhaul its tech industry and build local chip supply chains to avoid being dependent on foreign producers.