Vedanta Limited, an oil and gas conglomerate, is reportedly planning to finalize a location for its USD 20 billion semiconductor production facility in India by mid-June.

Notably, this USD 20 billion investment is for the development of two distinct units – the chip and the display. Moreover, the preliminary stage of the project will entail the cost of only USD 2 billion. Vedanta, which already has oil, power, & metals in its portfolio is diversifying into chip manufacturing by joining forces with Taiwanese giant Foxconn Technology group. 

The company's Chairman, Anil Agarwal, stated that the first chip product will be ready by the end of the next two years. He indicated that the company is not searching for an equity partner and will continue to make progress with their technical partner Foxconn, who will oversee the entire operation, from supplying technology to fabricating semiconductors.

While many private equity firms are looking to be a part of India's semiconductor expansion, the manufacturer argued that there was no shortage of funds. However, they have yet to discuss this with the PE firms.

Interestingly, Vedanta’s visions are aligned with Indian Prime Minister Narendra Modi's goal of making India a semiconductor powerhouse. As a result, the company is pursuing federal subsidies and consulting with multiple Indian states to determine the location of the unit.

The Indian government already has a USD 10 billion incentive plan in place for those investing in semiconductor production, which it wishes to expand as it strives on becoming an influential player in the global chip market.

It is worth noting that, according to estimates, the Indian semiconductor market will be worth USD 63 billion by the end of 2026, up from USD 15 billion in 2020.

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https://economictimes.indiatimes.com/industry/cons-products/electronics/vedanta-to-finalize-20-billion-indian-chip-display-unit-site-by-mid-june-says-chairman-anil-agarwal/articleshow/91795209.cms?from=mdr