Vedanta to invest up to $20 billion in semiconductor business in India
new Delhi:
Indian conglomerate Vedanta has invested $15 billion in the electronic chip and display manufacturing space and plans to increase the investment to $20 billion (about Rs 1.5 lakh crore), a senior company official said.
Akash Hebbar, global managing director of Vedanta Group’s display and semiconductor business, said display units for use in mobile phones and electronics devices are expected to be rolled out by 2024 and electronic chips from Indian manufacturing plants by 2025.
“Semiconductor is a long-term business. We’re looking at about $10 billion on performance. Right now we’re looking at $7 billion in semiconductors which could be well over $3 billion to grow this further. In the first 10 years We have worked to invest up to $15 billion. We will evaluate further investments at a later stage,” Mr. Hebbar said.
He is also the managing director of Vanstrat, which handles the display manufacturing business of the Anil Agarwal-led Vedanta Group.
Vedanta Group has applied for setting up semiconductor plants and display manufacturing units as part of the government’s incentive scheme for the sector.
Mr Hebbar said the company expects to start commercial supply of display units by 2024 and electronic chips in the 28 nanometer range by 2025.
“The display is less complex than the semiconductor fab. It will come out by the end of 2024. Mass production will begin within six to eight months of our factory setting up within 2024. Semiconductor will be around the end of 2025 and could spread is till 2026.
“Our target is to have more semiconductors by the end of 2024 and by the end of 2025. We will focus on local demand, but 25-30 per cent can also go for exports,” he said.
The official further said that the import of electronic components in the country is about $100 billion, of which semiconductors account for $25 billion.
The group has signed a memorandum of understanding with electronics manufacturing giant Foxconn to form a joint venture company that will manufacture semiconductors in India while Avancestr will handle the display business.
Vedanta is the first company to announce investment in semiconductor manufacturing after the government unveiled a $10 billion (Rs 76,000 crore) program to boost the electronic chip and display ecosystem in the country.
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