Following the Gujarat government’s announcement of its semiconductor policy, Vedanta and Foxconn inked MoU with the state government to establish a semiconductor manufacturing facility with an investment of ₹1.54-lakh crore.
As both the companies signed MoU, Prime Minister Narendra Modi said, the investment committed by Vedanta and Foxconn Group for setting up the unit in Gujarat will provide an impetus to the ecosystem for ancillary industries and help India’s MSMEs.
Expressing optimism over the latest investments in the state for the semiconductor manufacturing, the Prime Minister stated that “it will create a significant impact to boost economy and jobs while also help in creating a huge ecosystem for ancillary industries and thereby helping our MSMEs.”
The investment, as pointed out by the Gujarat government officials, is the largest everin the State by a corporate group in a single shot and will generate around one lakh new jobs.
Vedanta Group’s Vedanta Semiconductors Limited will set up an integrated Semiconductor Fab Unit and OSAT (Outsourced semiconductor assembly and test) facility at Gujarat with investment of ₹60,000 crore. The unit will operate on the 28nm technology nodes with wafer size 300mm 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 JV, while Foxconn will own 40 per cent. The JV will look at setting up a semiconductor manufacturing plant in the next two years. Vedanta Displays Limited will setup a Display Fab Unit at Gujarat with investment of ₹94,500 crore.
Both the groups will work closely with the State government to establish high-tech clusters with requisite infrastructure, including land, semiconductor grade water, high quality power, logistics, and a skill ecosystem, a State communique said.
The MoUs were signed in the presence of Union Minister for Electronics and Information Technology, Ashwini Vaishnaw, Gujarat Chief Minister Bhupendra Patel, Vedanta Group Chairman Anil Agarwal, among other officials.
The group is now looking for 400 acres of land, preferably closer to Ahmedabad. “We have sought capital, power and water subsidies, which we would be getting under the State policy from Gujarat,” Agarwal said.
Notably, Gujarat was the first to launch a dedicated policy for Semiconductor manufacturing which provided heavy subsidy support on land procurement, capital investment, reimbursements on stamp duty, fixed water tariff, as well as electricity tariff subsidy for a period if 10 years.
The Centre has already notified four schemes for the development of sustainable semiconductor and Display ecosystem, OSAT/ATMP in the country with an outlay of ₹76,000 crore towards the support for India Semiconductor Mission (ISM).
