Posted on 15 Sep 2022
Taiwanese multinational contract manufacturer Foxconn and the Mumbai-headquartered Indian mining company Vedanta recently signed a memorandum of understanding (MOU) with the Gujarat government. The two parties will jointly invest about INR 1.54 trillion ($19.4 billion) in Gujarat State, India, to establish semiconductor manufacturing complexes, Kallanish learns.
Vedanta Resources' founder and chairman Anil Agarwal says to Financial Times: "This complex will be operational by 2024 and another six month or so is required for it to reach full capacity. Vedanta and Foxconn will hold 63% and 37% stakes, respectively, in this chipmaking joint venture."
The two companies will set up an integrated production complex for semiconductors and displays. The microchips to be produced in this complex will go into mobile phones, cars, computers, and other devices in the growing Indian market.
Anil Agarwal adds: "India has enough demand for 5-10 such fabs, and we are going to mostly capture local demand. Total demand today in both semiconductor and glass is about $30-35 billion, and India is going to be in 10 years’ time a $350 billion market."
This investment is one of the first outcomes of the country's national strategy in chip industry advancement. Gujarat’s government said this joint venture would generate about 100,000 new jobs in the state. Expenditure subsidies and preferential policies on land and power are guaranteed by the Indian government.
According to Indian Express, the ruling government of Indian's Maharashtra State, a neighbouring state of Gujarat, was accused of missing this opportunity.
Source:Kallanish
