New Delhi Vedanta Resources Ltd Chairman Anil Agarwal said on Tuesday that his company is looking at a second chip and display manufacturing facility in India after it announced $20 billion. 1.54 trillion) investment plan for its first such venture in Gujarat. Agarwal said India would need at least two such factories to become a chip manufacturing hub and meet the needs of the country and the world.
“There are some interesting proposals from Andhra Pradesh and Maharashtra, and we will look for our second plant once we start operations from the first unit in Gujarat,” Agarwal said over the phone. The Gujarat facility may start by the end of the year. , and production is expected to start by 2024, Agarwal said.
Vedanta’s Gujarat plan, to be executed in a joint venture with Foxconn, the world’s leading contract manufacturer, comes nearly six months after it first expressed interest in finding a suitable location for the project. While Vedanta Display Ltd. will set up a display fabrication unit with an investment of Rs. 94,500 crore, Vedanta Semiconductors Ltd will set up an integrated semiconductor manufacturing unit and outsourced semiconductor assembly and testing (OSAT) facility 60,000 crores. Vedanta will own 60% of the Gujarat project, while Foxconn will own the rest.
The agreements in this regard were signed in the presence of Union Telecom and IT Minister Ashwini Vaishnav. The projects are expected to create around 100,000 jobs in the state.
Vaishnav said Vedanta’s project is in line with the government’s vision of achieving self-reliance in semiconductor manufacturing. “I congratulate Vedanta and Foxconn for this initiative and for bringing the semiconductor plant to India. The Gujarat plant will go a long way in helping create a trillion dollar digital national economy.” In an interview last month, Vaishnav said he expects India’s first semiconductor manufacturing plant to be operational by the end of this year.
Agarwal said the investment will support the growth of upstream and downstream electronics manufacturing clusters and establish healthy business relationships. He said the units will supply raw material to the entire range of industries, be it electric vehicles, automobiles, cellphones or laptops, boosting manufacturing in the country and helping it become a global electronic giant.
“The Gujarat facility will also provide opportunities for startups and other industries to conduct their operations and help the location become India’s own Silicon Valley,” Agarwal said. In addition, Vedanta will promote the development of industrial clusters around its chip unit, and the company has started talks with the state governments of Uttar Pradesh, Bihar, Maharashtra and Andhra Pradesh.
Several investors have indicated their interest to join Vedanta’s initiative. “The partners are initially arranging funds for the project internally and later new investors will be roped in,” said the Vedanta chairman.
Vedanta and Foxconn will work closely with the state government to set up high-tech clusters with necessary infrastructure including land, semiconductor-grade water, high-quality power, logistics, and a skills ecosystem.
Apart from making India a global partner in the supply chain, “the semiconductor fab unit will be a game-changer for the economy. It will generate significant employment opportunities for the youth and generate revenue for the state,” Agarwal said.
The 400-acre facility is located close to Ahmedabad, making it easy to find the right talent needed for this specialized production facility.
The semiconductor unit will operate on 28nm technology nodes with a wafer size of 300mm; And the display manufacturing unit will produce Generation 8 displays for small, medium and large applications. It will manufacture 40,000 wafers and 60,000 glass panels per month.
Bren Ho, Vice President, Foxconn Semiconductor Group, said the selection of the Gujarat location was the culmination of a comprehensive analysis of potential project sites in India and across the world by regional experts on a multiplicity of factors.
The semiconductor plant is a milestone for India, where the government has taken several initiatives to reduce dependence on imports of electronic goods by promoting domestic manufacturing of electronics, semiconductor products and components. In order to establish India as a global hub of electronics system design and manufacturing, the government had notified four schemes for the development of OSAT/ATMP, a sustainable semiconductor and display ecosystem in the country. 76,000 crores.
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