Vedanta Signs MoUs With Gujarat Government To Set Up Semiconductors & Display Fab Units
In a major step towards making India self-sufficient in the critical area of semiconductors and displays in line with Hon. PM Shri Narendra Modi’s bold vision, Vedanta 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 Gujarat.
The project envisages a total investment of Rs 1,54,000 crore and will provide employment to around 1 lakh people, attracting electronics ecosystem players across the value chain and putting the state of Gujarat on the global silicon map.
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.
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 Aatmanirbhar Bharat in this strategic sector.”
Semiconductors and displays are critical to establishing India as an electronics hub and will help attract suppliers and device assemblers to set up a 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% to reach $64 billion in 2026.
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 the 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.