HomeBusinessVedanta to open $20 billion semiconductor factory in Gujarat: Report

Vedanta to open $20 billion semiconductor factory in Gujarat: Report

Vedanta to open $20 billion semiconductor factory in Gujarat: Report

The project will include display and semiconductor facilities near Ahmedabad.

New Delhi:

Vedanta Ltd has selected Gujarat for its semiconductor project, two sources told Reuters, the first major step in a $20 billion joint venture with Taiwan’s Foxconn.

Vedanta received financial and non-financial subsidies, including capital expenditure and cheap power, from Gujarat to build the semiconductor plant, a source familiar with the matter said.

The project will include display and semiconductor facilities near Ahmedabad’s largest city, the source said, who declined to be named before the official announcement.

Lobbying for incentives, Vedanta had asked for 1,000 acres (405 ha) of land free of charge on a 99-year lease, and water and electricity for 20 years at subsidized and fixed prices, Reuters reported in April.

A Vedanta spokesperson did not respond to a request for comment, while Foxconn did not immediately respond.

A senior official in Gujarat’s science and technology department and another in Chief Minister Bhupendrabhai Patel’s office declined to comment.

An announcement is expected this week along with the formal signing of an MoU between the two sides, which is likely to be attended by Patel and Vedanta officials, the source said.

Other regions including Maharashtra, Telangana and Karnataka were also in the race to host the Vedanta-Foxconn mega project.

But in the last phase of talks in recent weeks, Gujarat has overtaken Maharashtra.

The government says India’s semiconductor market is projected to reach $63 billion by 2026 from $15 billion in 2020.

Much of the world’s chip production is limited to a few countries such as Taiwan, and late entrant India is now actively pushing companies to “start a new era in electronics manufacturing” as it seeks to provide seamless access to chips. seeks.

Oil-to-metals conglomerate Vedanta in February decided to diversify into chip manufacturing and formed a joint venture with Foxconn.

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