By Press Trust of India | Updated: 29 July 2023
Vedanta group chairman Anil Agarwal on Friday said that the first phase of its semiconductor project will involve a $5 billion (roughly Rs. 41,300 crore) investment of the overall $20-billion (roughly Rs. 1,64,500 crore) outlay, and the venture will be ready with made-in-India chip in two and a half years.
Vedanta is talking to three companies to rope them in as technology partners for its mega plans entailing foundry, chip manufacturing, and packaging and design.
“In 2.5 years, we will give you Vedanta made-in-India chips,” Agarwal told reporters on the sidelines of the SemiconIndia 2023 event.
The first phase of its semiconductor investment will be to the tune of $5 billion (roughly Rs. 41,300 crore), which is being structured.
“Vendata has a good cash flow, we will make a capital allocation in Vedanta and there is a queue of people to give us equity and debt…but we want the tie-ups to be in place first, and have an ecosystem,” he said.
After parting ways with Foxconn on their semiconductor joint venture, Vedanta group has made it clear that it remains committed to building India’s first semiconductor and display fabs in Dholera Special Investment Region in Gujarat, and substantial progress has happened to tie up with technology and equity partners in semiconductors.
Both Foxconn and Vedanta have now decided to apply for Indian chip-making incentives separately.
Foxconn has said it is working on plans to apply for incentives under the semiconductor and display fab programme, as the contract manufacturer pledged its commitment to India.
The Taiwanese electronics manufacturing giant said it has been actively reviewing the landscape for optimal partners.
India is wooing semiconductor and display manufacturers with a $10-billion (roughly Rs. 82,300 crore) incentive scheme, making a determined push to position itself as a global powerhouse for chip making.
Sophisticated chips are part of everyday life, used in mobile phones, refrigerators and cars to high-tech industries, and so fostering local industry with carefully-crafted schemes and policy sweeteners will link India to an ever-growing global chip market.
As it is, the global semiconductor shortage has emphasised the importance of this critical component in modern-day electronics.
