Vedanta becomes the third company to announce a chip plant location in India after international consortium ISMC and Singapore-based IGSS Ventures.
Vedanta with Taiwanese electronics manufacturing giant Foxconn, will invest ₹ 1.54 lakh crore to set up India's first semiconductor production plant, a display fab unit, and a semiconductor assembling and testing unit.
This joint venture will work closely with the state government to establish high-tech clusters. Here Foxconn is acting only as the technical partner, while oil-to-metals conglomerate Vedanta is financing the project.
The plant will start production in two years, and the companies said the project would create more than 100,000 jobs.
The vedanta-Foxconn joint venture is one of the successful applicants for the Production Linked Incentive (PLI) scheme for semiconductors bought by the government of India to cut the dependence on imports from nations like Taiwan and China.
A massive shortage in the semiconductor supply chain last year affected many industries, including electronics and automotive.
The Indian semiconductor market was valued at $27.2 billion in 2021 and is expected to grow at a healthy CAGR of nearly 19 percent to reach $64 billion in 2026. But none of these chips have been manufactured in India so far.
