The government of Gujarat also announced to offer 100 percent of stamp duty, which investors will pay initially for land sale, transfer, or on lease
According to an exclusive report of the Press Trust of India (PTI), Vedanta’s global managing director of semiconductor and display business Akarsh Hebbar has proclaimed that the joint venture between Vedanta and Foxconn is expected to manufacture 12-inch wafers using the 28-nanometer process as early as 2025 at its new semiconductor factory in Gujarat. After the commencement of the factory, it could take around one year to increase production, which would be 40,000 wafers per month mostly for the Indian market.
In an interaction with CNA, Hebbar added that the company is looking forward to commence its fabrication unit in Dholera region, a planned industrial city in Gujarat, which will be around 400 acres. Recently, while unleashing Gujarat’s semiconductor policy, the government said that it would begin “Dholera Semicon City” in the Dholera Special Investment Region near the city Ahmedabad in order to magnetize the investors. The managing director also showcased his confidence, mentioning that the venture will counter all the possible impediments to producing chips in the country like ample power backups, proper supply chains, and sufficient water resources.
While expressing concerns on securing the supply chains of the proposed venture, Hebbar analyzed that the semiconductor plant would fetch an ecosystem of scores of global subcontractors to the factory site, which will ultimately perk-up its operations; efficacies. The managing director also described his experience with clean room technology. He said that the subsidies and utility assurances from the state government would aid the JV to achieve its semiconductor aspirations.
As per the PTI report, the venture’s incentives and subsidies include zero stamp duty on land purchase and subsidized water and electricity, under the 'Gujarat Semiconductor Policy 2022-27' announced by the state government in July this year. Under this policy, eligible projects will be given a 75 percent subsidy on the purchase of the first 200 acres of land for setting up manufacturing units. Moreover, good quality water will be provided at the rate of Rs12 per cubic metre for the first five years.