Vedanta, Foxconn JV plan Rs1.54-trn chip unit in Gujarat

Chipping In

- Vedanta Displays Ltd will setup a Display Fab Unit at an investment of Rs 94,500 cr

- Vedanta Semi-conductors Ltd will set up an integrated Semi-conductor Fab Unit and OSAT with an investment of Rs60,000 cr

- Semiconductor fab unit will operate on 28nm technology nodes with wafer size 300mm

- Display mfg unit will produce Generation 8 displays catering to small to large applications

Ahmedabad: A joint venture of the Indian conglomerate Vedanta and Taiwanese electronics manufacturing giant Foxconn signed a Memorandum of Understanding (MoU) with the Gujarat government on Tuesday to set up a semiconductor and display manufacturing unit in the state.

Vedanta-Foxconn would invest Rs1,54,000 crore to set up the facility in Gujarat, which would create one lakh job opportunities, Chief Minister Bhupendra Patel said after the MoU was signed in the presence of Union Minister for Railways, Communications, Electronics & Information Technology, Ashwini Vaishnaw, at a function in Gandhinagar.

This is the biggest ever corporate investment in the history of independent India, said Gujarat Science and Technology Department Secretary Vijay Nehra, who signed the MoU on behalf of the state government.

Prime Minister Narendra Modi in a tweet said this MoU is an important step in accelerating India's semiconductor manufacturing ambition.

"This MoU is an important step accelerating India's semi-conductor manufacturing ambitions. The investment of Rs1.54 lakh crore will create a significant impact to boost economy and jobs. This will also create a huge ecosystem for ancillary industries and help our MSMEs," Modi tweeted.

Semiconductor chips, used in cars, mobile phones and other electronics devices, are not manufactured in India at present.

"Eight percent of all the 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. This is also strategically important for India because it will reduce our dependence on other countries," Nehra told PTI.

At present, the joint venture company is evaluating various sites in Gujarat to set up the plant and will finalise the location over the next couple of weeks, he said.

Out the total investment of Rs1,54,000 crore, Rs 94,000 crore will go into setting up the display manufacturing unit while Rs 60,000 crore will be invested for the semiconductor manufacturing facility, the official said.