Vedanta To Finalise Site For $20 Billion Indian Semiconductor, Display Plant By Mid-June; First Chip Product To Be Ready In Two Years

In a big boost to Modi government's plans to make India a semiconductor manufacturing hub, oil to metals conglomerate Vedanta is likely to finalise a location for its $20 billion semiconductor and display manufacturing plants in India by mid-June.

The development comes as the company plans to ready its first chip product in the next two years.

In an interview with Reuters, Agrawal said that the company plans to finalise sites for setting up manufacturing facilities for semiconductors and displays.

He said that in the first phase of the company's project will entail an investment of $2 billion.

The Vedanta group chairman said that private equity firms are interested to be part of India's semiconductor expansion and that there was no shortage of funds for the project.

Vedanta has partnered with Taiwan's Foxconn to form a joint venture to set up separate units for chip and display manufacturing with a total planned investment outlay of $20 billion.

"Foxconn is our technical partner. We may not take equity partner for the fab," Agarwal told Reuters in an interview in Davos.

He added that Foxconn, which is the contract manufacturer for Apple, will have technical responsibility for the operation, from providing the tech to making semiconductors.

The company is reportedly in talks with several Indian states on the manufacturing units' location.

According to the report, the semiconductor market in India is estimated to increase to $63 billion by 2026, compared to $15 billion in 2020.

"You have to create another Taiwan in India," Agarwal was quoted as saying.

He noted that in a bid to become a global chip manufacturing powerhous, India will have to focus on bringing the entire semiconductor ecosystem locally.