Vedanta's Plans To Start Semiconductor Manufacturing In India
Vedanta Group is all set to start making electronic chips in partnership with Foxconn after it receives clearance from the government.
Clearance for? Vedanta Foxconn JV is among three companies that have applied to set up semiconductor manufacturing units in the country.
Vedanta has also applied to set up a display fabrication plant to make screens that are used for display in electronic devices.
Electronics and IT Minister Ashwini Vaishnaw has said the government will start clearing applications in this calendar year.
What it targets: Vedanta expects a turnover of $3-3.5 billion in the first phase, which is by 2026-27, from both display and semiconductor combined.
Of this, $1 billion is expected to come from exports. However, their target is local consumption and they will make for India.
Only 10 per cent of display and 20-25 per cent of semiconductor units will be exported.
Vedanta Group will be investing up to $20 billion in the semiconductor business, and $15 billion will be invested in the first 10 years.
Vedanta expects to start manufacturing display units in 2024-25 and semiconductors by 2025-26.
It will be manufacturing 40,000 panels of semiconductor and 60,000 panels of display per month.
How Foxconn will help: Foxconn is running four foundries themselves and they will bring that ecosystem here.
Vedanta is looking at making a 28 nm chipset. Foxconn is a fully integrated unit that can bring the IPs required to make 28 nm technology.
Also, 20-30 per cent of the production capacity is likely to be absorbed by Foxconn itself and the company is also in discussion with smartphone makers for business.
Vedanta's previous attempts: Earlier, the company had announced plans to enter the semiconductor segment in 2015-16.
It had planned an investment of $10 billion to set up a display fab unit, but could not get the government's approval.
Later, Vedanta acquired Taiwan-based AvanStrate through Cairn India to enter into display fab manufacturing.
Government support: Vedanta's plans are in line with India's vision to make one billion smartphones, 15 million televisions, and 24 million notebooks per year by 2030 only for local consumption.
The government is providing financial support of up to 40 per cent for 28-45 nm chips and up to 30 per cent for setting up manufacturing units for 45-65 nm wafers.
The government expects investments of around Rs 1.7 lakh crore and 1.35 lakh jobs to be created in the next four years under the semiconductor PLI scheme.
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