Vedanta-Foxconn to start construction of the semiconductor plant by December quarter

19 Apr 2023 , 08:57 AM

In a joint interview with PTI, the CEO of Vedanta-Foxconn Semiconductors Limited, David Reed, and the global managing director of Vedanta Semiconductor and Display business, Akarsh Hebbar, said the group has submitted all technology tie-ups to the government and banks are comfortable funding the project cost in the ratio of 70 to 30 (from the company), after adjusting for subsidies.

‘We intend to hold the first shovel ceremony by the fourth quarter of this year. We are making every effort to generate income by 2027. This would begin in the first quarter of 2027 with 5,000 wafers. And after that, we’ll gradually increase it to 40,000 wafers per month,’ Reed said.

He said that because 28 nm wafers use the same equipment as 40 nm wafers, the company will also produce them at the same time.

A sizable semiconductor disc is produced by a semiconductor plant and then processed to create electronic chips.

Additionally, Vedanta will construct an OSAT (outsourced semiconductor assembly and test) facility to process semiconductor wafers so that the automotive and electronics industries can use them.

We are introducing tried-and-true technology, including 28 nm and 40 nm, which are ideal for ICT gadgets, autos, and cellphones that are reasonably priced. Semiconductors and screens will produce 60% of all electronic devices in India. As our Prime Minister refers to it, Atmanirbhar, it is what will truly make it self-sufficient, Hebbar remarked.

The Dholera Special Investment Region, which is close to Ahmedabad, has been chosen by the joint venture between the Indian conglomerate Vedanta and the world’s largest electronics manufacturer, Foxconn, to construct their semiconductor and display production facility.

The project’s total cost will be partially subsidized by the Centre.

‘All of these will result in downstream developments such as OSAT or module plants. According to Hebbar, this will result in 150 new businesses joining the upstream ecosystem and supply chain base from the US, Japan, Korea, and Taiwan.

According to him, thousands of micro, small, and medium-sized firms would start producing their own mobile phones as happened in China as a result of the chip production.

‘In India, the market is favourable for creating the new Silicon Valley through this type of ecosystem. There will be 21–23 times GDP multipliers. You will actually witness how one of these ecosystems would transform us from a developing country into a developed country, Hebbar remarked.

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