Vedanta and Foxconn sign agreement with Indian state for $20 billion semiconductor unit

Indian oil-to-metals conglomerate Vedanta and global manufacturing giant Foxconn have signed a Memorandum of Understanding with the Indian state of Gujarat to set up a $20 billion Semiconductor and display unit in the coastal state that is home of Prime Minister Narendra Modi.

Top officials said that the venture will be financed by the company with a background in mining. subsidies will be offered to the project by the state of Gujarat

Gujarat will offer every possible help in the project, said the Chief Minister at the press event. All state government departments will help make this project a success.

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. https://t.co/nrRbfKoetd

— Narendra Modi (@narendramodi) September 13, 2022

Tuesday's move is the latest step in India's ambition to expand its hardware manufacturing prowess as the world's second most populated nation works to become self reliant. In order to attract global giants to manufacture in India, New Delhi has launched a number of incentive programs.

Over 2.5 million jobs have been created by electronics manufacturing in India. The target has been given to expand the employment record by 10 million. India needs to take electronics manufacturing in the country from $80 billion to $300 billion according to the IT Minister. The world will watch India quickly emerge as a very strong Semiconductor player.

In February this year, Mumbai-based Vedanta and Taiwan's Foxconn formed a joint venture company to manufacture chips in South Asian markets. Most of the equity is held by the Indian company. The joint venture company is headed by the chairman.

After the Indian government launched the India Semiconductor Mission as its business division, the partnership between the two companies took place. In late July, the Gujarat government announced it would work with New Delhi to promote the manufacturing of chips in the state.

The Government of Gujarat, home of Prime Minister Narendra Modi, has made efforts to improve government efficiency. Gujarat has been recognized for its industrial development, green energy, and smart cities. Confidence in setting up a chip factory is increased by the improved infrastructure and government support. We are looking forward to working with our partners and the Gujarat leadership.