As per the government, India's semiconductor market is estimated to reach $63 billion by 2026 from $15 billion in 2020
After several rounds of discussions, Vedanta has finally opted for Gujarat for its upcoming semiconductor venture in association with Taiwan’s contract manufacturer Foxconn. A couple of months back, the Indian industrial giant signed an MoU with Foxconn with an investment of $20 billion to complete the venture. According to some anonymous sources of Vedanta, those familiar with the information told the media that the company has obtained non-financial and fiscal subsidies along with capital expenditure and cheaper power from the Gujarat government to construct the semiconductor FAB.
In this western state’s city of Ahmedabad, the venture includes both semiconductor and display facilities and while looking to grab the PLI incentives, the company looked for 1,000 acres (405 hectares) of land free of cost on a 99-year lease, and water and power at concessionary and fixed prices for 20 years, as stated exclusively by the Reuters back in April this year. When the media reached out to both Foxconn and Vedanata for an official statement, they did not answer any queries. Also, the officials in the ministry of Gujarat also refrain themselves from answering questions as of now.
Sources also highlighted that in the coming week, Chief Minister Bhupendrabhai Patel and Vedanta officials are being speculated to announce this matter backed by formal signing of the MoU. Apart from Gujarat, Maharashtra in west and Telangana and Karnataka in the south were also looking forward to plant the Vedanta-Foxconn joint venture, but Gujarat became triumphant in this venture defeating Maharashtra. As per the government, India's semiconductor market is estimated to reach $63 billion by 2026 from $15 billion in 2020.
As per the previous report of CircuitDigest, under the alliance, Foxconn has promised to invest an amount of $118.7 million (Rs 899 crore) and it will hold a 40 percent stake in the partnership. According to Vedanta’s spokesperson, the company mentioned that they were trying to get associated with several states to finalize the set-up of the upcoming semiconductor production plant. Foxconn is now said to be the globe’s largest electronics contract maker, which is a major producer for the Cupertino tech giant Apple. Of late, the contract manufacturer has also expanded its segment into semiconductors and electric vehicles.