Vedanta, Foxconn Join Forces To Set Up $19.5 bn Display Manufacturing Plant In Gujarat

Vedanta Ltd and Taiwanese electronics manufacturing firm Foxconn will reportedly be investing $19.5 billion to build semiconductor and display production plants in Gujarat. According to a Reuters report, the venture has already received subsidies on electricity and capital expenditure from Gujarat to build units near Ahmedabad.

The mega-investment of 1.54 trillion rupees, which the western state said was the largest ever by any company in an Indian state, comes months ahead of local elections in the state where Modi’s political party is facing stiff competition from the opposition.

India’s Own Silicon Valley

Vedanta Ltd and Foxconn said that their joint venture will create employment for over 100,000 people in Gujarat. Most of the world’s chip manufacturing is restricted to some countries such as Taiwan and now India is attracting manufacturing firms to “usher in a new era in electronics manufacturing” as it’s trying to look for ways to have chips in abundance.

Vedanta Chairman Anil Agarwal, during a public event in Gujarat, said the venture’s goal is to kick off manufacturing displays and chips within two years. The event also saw state officials sign an agreement.

“India’s own Silicon Valley is a step closer now,” Agarwal tweeted after the event.

The state government confirmed that Vedanta will set up a display manufacturing unit with an investment of 945 billion rupees and another chip production unit with an investment of 600 billion rupees. Both firms will be working closely with the state government to deploy high-tech clusters with top-tier infrastructure, the statement added.

India Aiming For The Top Spot

Foxconn will come in as the technical partner, while Vedanta will be financing the project. Foxconn, in a statement, said that Gujarat’s active support and infrastructure “increases confidence in setting up a semiconductor factory.”

Besides, the Indian government has also announced incentives for companies investing in semiconductor manufacturing, as the country is poised to become a major player in the global supply chain for semiconductors and chips.

Vedanta will be the third firm after international consortium ISMC and Singapore-based IGSS Ventures to announce a chip plant location in the country. The other two companies will be setting up their plants in Karnataka and Tamil Nadu respectively.