Vedanta-Foxconn will invest 1 lakh 54 thousand crores, 1 lakh people will get employment

Vedanta Group and Taiwanese company Foxconn will jointly set up a plant in Gujarat for semiconductor production. This will be India's first semiconductor plant. For this, the group has signed two Memorandums of Understanding (MoUs) with the Gujarat government. The group will set up Semiconductor Fabrication Unit, Display Fabrication Unit and Semiconductor Assembling and Testing Unit. For this project, both companies will invest Rs 1 lakh 54 thousand crores.
These plants will be set up on 1000 acres of land in Ahmedabad. About 1 lakh people will also get employment from this project. The proposed Semiconductor Manufacturing Fabrication Unit will work on 28nm technology nodes. The display manufacturing unit will manufacture Generation 8 displays for small, medium and large applications.
However, the Ministry of IT and Electronics and ISM have not yet cleared the first round of applications. The Union Minister of Electronics and Information Technology Ashwini Vaishnav was present to sign the MoU along with Vedanta Group Chairman Anil Agarwal.
Prime Minister Narendra Modi tweeted about this project and said, 'This MoU is an important step in giving impetus to India's semi-conductor manufacturing ambitions. The investment of Rs 1.54 lakh crore will create a significant impact to boost the economy and jobs. It will also create a huge ecosystem for ancillary industries and help our MSMEs.
Earlier in February this year, Vedanta had joined hands with Foxconn for a joint venture and applied for the Semiconductor Manufacturing Scheme of the Government of India. Vedanta holds 60% and Foxconn 40% in this joint venture. Together, the two companies want to set up a semiconductor manufacturing plant in the next two years.
In July this year, the Gujarat government announced the Semiconductor Policy 2022-27, under which the government had proposed a massive subsidy on electricity, water and land charges for those wishing to invest in semiconductor or display fabrication manufacturing in the state.
Semiconductors and displays are essential to establish India as an electronics hub. This investment will help in attracting suppliers and device assemblers to set up a base in India.
The Indian semiconductor market was valued at Rs 2.16 lakh crore ($27.2 billion) in 2021. It is now expected to grow at a CAGR of around 19% to reach Rs 5.09 lakh crore ($64 billion) in 2026.
Earlier ISMC had signed an MoU with the Government of Karnataka to set up a 65nm Analog Semiconductor Manufacturing Scheme in the state.