Last year, a massive shortage in the semiconductor supply chain impacted many industries, including electronics and automobiles.
New Delhi: Gujarat will become home to India’s first semiconductor production facility thanks to investments from mining conglomerate Vedanta and Taiwanese electronics manufacturing giant Foxconn totaling 1.54 lakh crore.
Ten things about the Vedanta-Foxconn deal are as follows:
- Vedanta and Foxconn’s 1.54 lakh crore investment will be used to build India’s first semiconductor manufacturing facility, a display fabrication unit, and a semiconductor assembling and testing unit.
- In Ahmedabad, the plants will be built on a 1000-acre plot of land.
- After signing the memorandum of understanding (MoU) with the Gujarat government, Vedanta Chairman Anil Agarwal told PTI that the plant would begin production in two years.
- The project is being financed by oil-to-metals conglomerate Vedanta, with Foxconn serving as the technical partner.
- Vedanta and Foxconn said in a joint statement that they will collaborate closely with the state government to create high-tech clusters with the necessary land, water, and power infrastructure, including semiconductor-grade water.
- Additionally, the companies claimed that the project would generate over 100,000 new jobs in Gujarat.
- Semiconductor chips, also known as microchips, are essential components of many digital consumer products, ranging from automobiles to mobile phones and ATM cards. In 2021, the Indian semiconductor market was estimated to be worth $27.2 billion, and by 2026, it is anticipated to grow at a healthy CAGR of almost 19% to reach $64 billion. But up until now, none of these chips have been produced in India.
- After the international consortium ISMC and Singapore-based IGSS Ventures, which are established in Karnataka and Tamil Nadu respectively, Vedanta is the third company to announce the location of a chip plant in India.
- Electronics and the automotive sectors were among those last year that were significantly impacted by a severe shortage in the semiconductor supply chain.
- The government introduced a fiscal incentive program for domestic semiconductor production to reduce reliance on imports from countries like Taiwan and China. For the Production Linked Incentive (PLI) scheme for semiconductors, Vedanta-Foxconn was one of the chosen applicants.