Vedanta will choose a location in India for its $20 billion semiconductors and display plants by mid-June, and the first chip product will be available in two years, according to Chairman Anil Agarwal.
Vedanta, an oil-to-metals conglomerate, stated in February that it would diversify into chip production and form a joint venture with Foxconn of Taiwan to support Prime Minister Narendra Modi’s aim to make India a semiconductor manufacturing hub.
Vedanta intends to invest a total of $20 billion in two independent semiconductor and display production units. Vedanta is seeking incentives from Modi’s government and is in discussions with some Indian states about the placement of the operation.
“Foxconn is our technical partner. We may not take equity partner for the fab,” In a Davos interview, Agarwal told Reuters that the Apple contract manufacturer will be responsible for all aspects of the operation, from providing technology to manufacturing semiconductors.
The project’s first Phase will cost Vedanta nearly $2 billion told Agarwal
“You have to create another Taiwan in India,” Agarwal said, saying that for India to become a global powerhouse, it will need to focus on bringing the entire semiconductor ecosystem to the country.
He added that private equity firms want to be a part of India’s semiconductor boom and that there is no scarcity of capital, but that Vedanta had yet to hold negotiations with PE firms. India’s semiconductor market is expected to grow to $63 billion by 2026, up from $15 billion in 2020.
The Indian government has stated that it will boost incentives for those investing in semiconductor production beyond the first $10 billion plan, as it aspires to become a major role in the global chip supply chain.