Vedanta -; Foxconn to invest $19.5 billion in Gujarat chip project

13 Sept 2022 , 03:26 PM

To establish a semiconductor facility in Gujarat, the home state of Indian Prime Minister Narendra Modi, Vedanta Ltd., and Taiwan's Foxconn have struck a deal for $19.5 billion (1.54 trillion rupees). Near Ahmedabad, the major city in the western state, they intend to construct separate facilities for semiconductor and display manufacture.

Bhupendrabhai Patel, the chief minister of Gujarat, said that the project will generate more than 100,000 employees and that Gujarat was ready to provide whatever assistance necessary for the project, which it narrowly defeated Maharashtra, the richest state in India, to win.

While oil-to-metals giant Vedanta is providing the project's finance as part of its effort to expand into the chip manufacturing industry, Foxconn is serving as the project's technical partner.

In a statement, Foxconn said that the infrastructure of the state and the government's proactive cooperation "increases confidence in building up a semiconductor manufacturing." In order to establish itself as a major participant in the global chip supply chain, the Indian government has stated that it will offer incentives for semiconductor production beyond a $10 billion first plan.

Vedanta is the third business to announce the site of a chip facility in India, following the establishment of plants by the multinational consortium ISMC and the Singapore-based IGSS Ventures in TN and KA.

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