India is ready to set up its first-ever semiconductor plant in Ahmedabad, Gujarat worth Rs 1.54 trillion. Mining conglomerate Vedanta and Taiwanese electronics manufacturing giant Foxconn are ready to invest a combined Rs 1.54 lakh crore to set up the first semiconductor manufacturing plant in Gujarat. The plant will create over 1,000 jobs and will help the state become a hub for the semiconductor industry.
The company plans to set up a manufacturing plant in a 1000-acre area in Ahmedabad. Chairman Anil Agarwal said that production will begin in two years, and a semiconductor unit, a display fabrication unit, and a semiconductor assembling and testing unit will be built by Vedanta and Foxconn. A memorandum of understanding (MoU) has been signed by the company with the Gujarat government.
Many digital products require semiconductor chips or microchips; hence they are an integral part of digital products, whether it be mobile phones, cars, or ATM cards. It is expected that the Indian semiconductor market whose value was USD 27.2 billion in 2021, will grow at a healthy CAGR of around 19 percent. It is predicted to reach up to USD 64 billion in 2026. But so far India is not producing these semiconductor chips.
Last year, the electronics and automotive industries faced an extensive shortage in semiconductor supply.
After the International consortium ISMC and Singapore-based IGSS Ventures, Vedanta is the third company that announced a chip plant location in India. The other two plants are set up in Karnataka and Tamil Nadu.
After the breakage of this news, Vedanta witnessed a rise of about 3.4 percent in the shares.
On Wednesday, Vedanta’s Chairman Anil Agarwal said ‘Made in India’ semiconductors can exceptionally reduce the prices of finished products.
On a leading news channel, he said that once world-class glass and semiconductor chips are available, the price of a laptop can be priced around Rs 40,000, which cost us around Rs 1 lakh in today’s time.
Anil Agarwal, the chairman of Vedanta Resources Limited, said that currently the glass is produced in Taiwan and Korea, but very soon it will be manufactured in India as well. He said that this will not only create jobs for the local population but will also help the country become more self-sufficient.