Big Boost! Vedanta-Foxconn to set up new semiconductor plant worth Rs 1.54 lakh crore in Gujarat

Gandhinagar, Sept 13: In a major boost to create a manufacturing base in India, Vedanta-Foxconn has chosen Gujarat as the destination for their semiconductor plant, Vedanta group chairman Anil Agarwal said. 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 Rs 1.54 lakh crores will help make India's #Atmanirbhar Silicon Valley a reality," Agarwal said in a series of tweets.

 

 

This project, which is expected to reduce India's electronic imports besides providing 1 lakh direct skilled jobs, will help the country's manufacturing sector, he said in another tweet. "My deep gratitude to the Gujarat Govt and 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."

 

India's own Silicon Valley is a step closer now, the Vedanta Chairman tweeted. "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!," he tweeted.

 

 

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." 

 

 

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.