Anil Agarwal, Chairman of Vedanta Resources Ltd, addresses the audience during the ‘SemiconIndia 2023’, India’s annual semiconductor conference, in Gandhinagar, India, July 28, 2023.
| Photo Credit: REUTERS
Vedanta group chairman Anil Agarwal on July 28 said that first phase of its semiconductor project will involve $5 billion investment of the overall $20-billion outlay, and the venture will be ready with made-in-India chip in two and a half years.
Vedanta is talking to three companies to rope them in as technology partners for its mega plans entailing foundary, chip manufacturing, and packaging and design.
“In 2.5 years, we will give you Vedanta made-in-India chips,” Mr. Agarwal told reporters on the sidelines of SemiconIndia 2023 event.
The first phase of its semiconductor investment will be to the tune of $5 billion, which is being structured.
“Vendata has a good cash flow, we will make a capital allocation in Vedanta and there is queue of people to give us equity and debt…but we want the tie-ups to be in place first, and have ecosystem,” he said.
After parting ways with Foxconn on their semiconductor joint venture, Vedanta group has made it clear that it remains committed to building India’s first semiconductor and display fabs in Dholera Special Investment Region in Gujarat, and substantial progress has happened to tie up with technology and equity partners in semiconductors.
Both Foxconn and Vedanta have now decided to apply for India chip-making incentives separately.
Foxconn has said it is working on plans to apply for incentives under semiconductor and display fab programme, as the contract manufacturer pledged its commitment to India.
The Taiwanese electronics manufacturing giant said it has been actively reviewing landscape for optimal partners.
India is wooing semiconductor and display manufacturers with a $10-billion incentive scheme, making a determined push to position itself as a global powerhouse for chip making.
Sophisticated chips are part of everyday life, used in mobile phones to refrigerators and cars to high-tech industries, and so fostering local industry with carefully-crafted schemes and policy sweeteners will link India to an ever-growing global chip market.
As it is, the global semiconductor shortage has emphasised the importance of this critical component in modern-day electronics.
