The Vedanta Group and Foxconn, a Taiwanese electronic manufacturing powerhouse, have announced plans to establish a massive semiconductor manufacturing facility in Gujarat. Anil Agarwal, the chairman of Vedanta Group, announced the news on Twitter.
“Happy to announce that the new Vedanta-Foxconn semiconductor plant will be set up in #Gujarat. Vedanta’s landmark investment of 1.54 lakh crores will help make India’s #Atmanirbhar Silicon Valley a reality,” Agarwal tweeted. He further added, “This project will help fulfil Hon’ble PM @narendramodi Ji’s vision of creating a robust manufacturing base in India. It will reduce our electronics imports & provide 1 lakh direct skilled jobs to our people…going from job seekers to job creators!”
Vedanta and Foxconn also inked a memorandum of understanding (MoU) with the Gujarat government on Tuesday to establish the plant in the state. The MoU was signed in Gandhinagar in the presence of Ashwini Vaishnaw, Minister for Railways, Communications, Electronics, and Information Technology.
According to reports, Vedanta received financial and non-financial incentives from Gujarat, including capital expenditure and low-cost power, to establish the semiconductor facility. The project would feature display and semiconductor factories in Ahmedabad.
Gujarat Chief Minister Bhupendrabhai Patel stated that the initiative will create more than 100,000 jobs and that the state was willing to provide whatever assistance to the project, which it won in a close contest with India’s wealthiest state, Maharashtra. This, according to Prime Minister Narendra Modi, is a crucial step in accelerating India’s semiconductor manufacturing goals.
According to Foxconn, the state’s infrastructure and the government’s active assistance “increases confidence in setting up a semiconductor factory.” According to the government, India’s semiconductor business would be worth $63 billion by 2026, up from $15 billion in 2020.