Vedanta Signs MoUs With Gujarat Government To Set Up Semiconductors & Display Fab Units
The Indian semiconductor market was valued at $27.2 billion in 2021 and is expected to grow at a healthy CAGR of nearly 19 per cent to reach $64 billion in 2026
In a major step towards making India self-sufficient in the critical area of semiconductors 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.
"We are delighted to announce that Gujarat will be the location for our display and semiconductor fab ventures. We are privileged to take one step further in supporting Prime Minister Modi's vision of aatm nirbhar Bharat in this strategic sector," said Anil Agarwal, Vedanta Chairman.
The project has investments to the tune of INR 1,54,000 crore. 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.
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 per cent of the equity in the joint venture while Foxconn will own 40 per cent. The JV will look at setting up a semiconductor manufacturing plant in the next two years.
"The Gujarat plant will go a long way in helping build a $1 trillion digital national economy," said Ashwini Vaishnav, union minister for electronics and information technology.
Semiconductors and displays are critical to establishing India as an electronics hub and will help attract suppliers and device assemblers to setup base in India. The Indian semiconductor market was valued at $27.2 billion in 2021 and is expected to grow at a healthy CAGR of nearly 19 per cent to reach $64 billion in 2026.
"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 one year in office which is also a testimony to the policy stability and policy support coupled with good governance and excellent infrastructure facilities existing in Gujarat. We will provide all help to the joint venture so that the plant can start its operations soon," said Gujarat chief minister Bhupendrabhai Patel.
The decision to set up the project in Gujarat comes after Vedanta and Foxconn announced in February to form a joint venture company in India. Vedanta has a presence in electronics and technology business through group companies Avanstrate Inc. and Sterlite Technologies.