Vedanta to finalize site for $20 billion Indian semiconductor and display factory by mid-June; First chip product to be ready in two years
In a big boost to the Modi government’s plans to make India a semiconductor manufacturing hub, oil-metals conglomerate Vedanta is expected to finalize a location for its semiconductor and display manufacturing factories. $20 billion in India by mid-June.
The development comes as the company plans to prepare its first chip product within the next two years.
In an interview with Reuters, Agrawal said the company plans to finalize sites for setting up semiconductor and display manufacturing facilities.
He said that in the first phase of the company’s project, there will be an investment of 2 billion dollars.
The chairman of Vedanta Group said that private equity firms are interested in being part of India’s semiconductor expansion and there is no shortage of funds for the project.
Vedanta has teamed up with Taiwan’s Foxconn to form a joint venture to create separate units for manufacturing chips and displays with an expected total investment of $20 billion.
“Foxconn is our technical partner. We cannot take a financial partner for the fab”, Agarwal Told Reuters in an interview in Davos.
He added that Foxconn, which is Apple’s contract manufacturer, will have technical responsibility for the operation, from supplying technology to manufacturing semiconductors.
The company is said to be in talks with several Indian states over the location of manufacturing units.
According to the report, the semiconductor market in India is expected to reach $63 billion by 2026 from $15 billion in 2020.
“You have to create another Taiwan in India,” Agarwal said.
He noted that in order to become a global chipmaking powerhouse, India will need to focus on building the entire semiconductor ecosystem locally.