Anil Agarwal struggling to find international investors for $19 billion chip unit, says media report

15 Dec 2022 , 08:26 AM

According to news reports, billionaire Anil Agarwal is having difficulty securing funding for a planned semiconductor factory in India that would require an expenditure of up to Rs1.54 lakh crore ($18.6 billion).

The report claimed that Agarwal’s agents met with significant financiers from the Middle East, Singapore, and the US over the previous three months to secure funding commitments for the manufacturing business. Without offering any information, the report claimed that all the funds passed up the chance, leaving them with basically no backers for the project.

The businessman had previously revealed in September that his Volcan firm has partnered with Hon Hai Precision Industry Co. to establish a chip manufacturing facility in the Gujarat state. Hon Hai Precision Industry assembles most iPhones sold worldwide The partners announced the idea while counting on increasing semiconductor demand despite having little expertise managing major chip factories.

A few days after tweeting that his India division, Vedanta Ltd., was funding the chip plant, Agarwal changed his statement and said that Volcan would be in charge of the manufacturing operations.

For the facility that is anticipated to be installed in two years, the venture expects a $2 billion initial expenditure. As part of a production incentive plan, the Indian government is also prepared to cover half the cost of such projects.

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