India’s oil-to-metals conglomerate Vedanta on Tuesday said the company and electronics manufacturing giant Foxconn will together set up a semiconductor and display FAB manufacturing unit in Gujarat. Both companies will invest Rs 1,54,000 crore for establishing the facility in the state.
Vedanta and Foxconn on Tuesday also signed a memorandum of understanding with the Gujarat government to set up the unit in the state. The MoU was signed in the presence of Minister for Railways, Communications, Electronics & Information Technology, Ashwini Vaishnaw, at a function held in Gandhinagar.
“History gets made! 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,” Vedanta Resources founder and chairman Anil Agarwal said in a series of tweets.
Both companies would invest Rs 1,54,000 crore to set up the facility in Gujarat, which would create one lakh job opportunities, Gujarat Chief Minister Bhupendra Patel said on the occasion. Patel also said his government will provide cooperation to set up the facility and to make it a success.
Prime Minister Narendra Modi in a tweet said on Tuesday, “This MoU is an important step accelerating India’s semi-conductor manufacturing ambitions. The investment of Rs 1.54 lakh crore will create a significant impact to boost economy and jobs. This will also create a huge ecosystem for ancillary industries and help our MSMEs.”
Agarwal said this project will help fulfil Prime Minister Narendra Modi’s vision of creating a robust manufacturing base in India. It will reduce the country’s electronics imports and provide one lakh direct skilled jobs to people, going from job seekers to job creators.
“My deep gratitude to the #Gujarat Govt & the Union IT Minister, who have helped Vedanta tie things up so quickly. India’s #tech ecosystem will thrive, with every state benefiting via the new electronics manufacturing hubs,” he said in one of the tweets.
He also said India’s own Silicon Valley is a step closer now. “#India will fulfil the digital needs of not just her people, but also those from across the seas. The journey from being a Chip Taker to a Chip Maker has officially begun…Jai Hind!”
India’s semiconductor market is estimated to reach $63 billion by 2026 from $15 billion in 2020. Most of the world’s chip output is limited to a few countries like Taiwan and late entrant India is now actively luring companies to “usher in a new era in electronics manufacturing” as it seeks ways to have seamless access to chips. It decided in February to diversify into chip manufacturing and formed a joint venture with Foxconn.
As incentives, Vedanta had sought 1,000 acres (405 hectares) of land free of cost on a 99-year lease, and water and power at concessionary and fixed prices for 20 years, Reuters had reported in April.
Read all the Latest Business News and Breaking News here
Comments
0 comment