Highlight
- Vedanta-Foxconn to set up India’s first chip factory
- 60:40 Vedanta-Foxconn joint venture to set up factory in Ahmedabad
- Plant will start production in two years
India’s first chip factory Mining conglomerate Vedanta and Taiwanese electronics manufacturing company Foxconn will invest Rs 1.54 lakh crore, the biggest ever, in setting up India’s first semiconductor plant in Gujarat. The Vedanta-Foxconn 60:40 joint venture will set up Semiconductor Fab Unit, Display Fab Unit and Semiconductor Assembling and Testing Unit on 1000 acres of land in Ahmedabad district. Semiconductor chips, or microchips, are essential pieces of many digital consumer products – from cars to mobile phones and ATM cards. Last year, severe shortfalls in the semiconductor supply chain affected a number of industries, including electronics and automotive. Prime Minister Narendra Modi lauded the MoU which will boost the economy and generate employment.
- Vedanta Chairman Anil Agarwal said after signing a memorandum of understanding (MoU) with the Gujarat government that the plant would start production in two years. The Indian semiconductor market was valued at USD 27.2 billion in 2021 and is expected to grow at a healthy CAGR of around 19 per cent to reach USD 64 billion in 2026. But none of these chips are manufactured in India till now.
- To reduce dependence on imports from countries like Taiwan and China, the government has come up with a financial incentive scheme for manufacturing semiconductors in the country. Vedan-Foxconn is one of the successful applicants of the Production Linked Incentive (PLI) Scheme for Semiconductors.
- “This is the biggest ever investment in Gujarat. We will have the first semiconductor plant in the country,” Agarwal said. Local manufacturing of chips will make laptops and tablets cheaper.
- “This MoU is a significant step in accelerating India’s semi-conductor manufacturing ambitions. The Rs 1.54 lakh crore investment will create a significant impact to boost the economy and jobs. It will also create a huge ecosystem for ancillary industries.” Will make and help our MSMEs,” he tweeted.
- Besides Vedanta, a consortium of Dubai-based NextOrbit and Israeli tech firm Tower Semiconductor have signed an agreement with the Karnataka government for a plant in Mysore, while Singapore-based IGSS Venture has selected Tamil Nadu as the location for its unit. Chosen.
- Gujarat Science and Technology Department secretary Vijay Nehra, who signed the MoU on behalf of the state government, said that 8 per cent of all chips used in the world are manufactured in Taiwan, followed by China and Japan. . “This upcoming facility will mark the beginning of chip manufacturing in India. It is also strategically important for India as it will reduce our dependence on other countries.”
- The official said that out of the total investment, Rs 94,000 crore would be spent on setting up the display manufacturing unit while Rs 60,000 crore would be invested in the semiconductor manufacturing facility. As per the MoUs signed by both the parties, the Gujarat government will facilitate the investor to obtain necessary permissions and clearances from the respective state departments.
- “Gujarat government will extend fiscal and non-fiscal incentives and benefits as outlined under the Gujarat Semiconductor Policy-2022. Gujarat is the only state to have such a policy specifically for the semiconductor industry,” Nehra said.
- Gujarat Chief Minister Bhupendra Rajinikanth Patel assured that his government will extend support to the investment institution in setting up the facility and making it a success.
- “We will provide all support to the joint venture so that the plant can start its operations soon. We are determined to make our country more self-reliant in technology and reduce our dependence on imports from other countries. We sincerely hope that the hub May a bright future dawn on us and attract investments from other MNCs down the line,” he said.
Union Telecom and IT Minister Ashwini Vaishnav in his address said that the Prime Minister has set a target of creating one crore employment opportunities in the electronics manufacturing sector.
“When Prime Minister Modi launched Digital India (initiative) about seven years ago, we wondered where this journey would take us in future, as the PM’s thought process was completely different,” he said.
Vaishnav said that the journey started with initiatives like Startup India and Make in India. Today, there are 70,000 startups in India, including 100 unicorns, the minister said, adding that India has become the world’s second largest mobile phone manufacturer.
He said that Indian companies make electronics goods worth $ 80 billion or about Rs 6,00,000 crore every year.
“Under the leadership of the Prime Minister, we have created an ecosystem which has created 25 lakh jobs in the electronics sector alone,” he said.
“Now the PM has set a target to take the number from 25 lakh to one crore. To do this, we are working on taking the electronics production from the current 80 billion USD to 300 billion USD, which is about 25 million. ₹00,000 crores,” Vaishnav said.
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