After Tata Group, Vedanta Joins the Semiconductor Rat-race in India with an Investment of Rs 60,000 Crore

Published  December 27, 2021   0
S Staff

Apart from partnerships, the funding will be made via debt and equity, while around 80 percent of production from the factory will be used for domestic purposes and the rest for exports

After the government of India recently unleashed the Production Linked Incentive (PLI) scheme of Rs 76,000 Crore to boost semiconductor manufacturing cluster, India’s global business firm Vedanta Group spearheaded by Anil Agarwal has proclaimed to invest Rs 60,000 Crore to commence a state-of-the-art display and semiconductor manufacturing in the coming three years. Japanese firm Avanstrate Inc, the maker of glass used in the display panels, which is also the group organization of Vedanata will make this investment.

According to various media reports, this is almost the second attempt by Vedanta Group to make an investment in the semiconductor manufacturing ecosystem in India. The company is now deciding its joint ventures, equity partnerships, and the technology to be used with renowned international fabrication companies. 

Akarsh Hebbar, managing director of AvanStrate, told media, "We are in the last stages of negotiations with various state governments for setting up a factory that would require between 250 acres and 400 acres. Overall investments into the project will range between $6 billion (Rs 45,000 crore) and $8 billion (Rs 60,000 crore) in the first two phases, following which we will carry out further assessment of the market for expansion." Hebbar also added that several states in India like Karnataka, Haryana, Telangana, Maharashtra, Tamil Nadu, and Guajarat are in the list to set up the manufacturing unit and the final decision is yet to be made. “We are hoping to get an additional 10-15% capital investment support from the state where we invest, apart from the central government’s subsidy.”

The company is already in discussions with various international semiconductor companies such as Sharp, TSMC, Foxconn, Samsung, LG, and Microelectronics Corp who will help in commencing the gigantic fabrication chipsets and the display glass unit apart from the LCD module unit. Now, the discussion could fetch the result of technology alliances, or the amalgamated equity investment via joint ventures. Vedanta spokesperson added that all decisions will be finalised in the coming few months.