India's First Semiconductor Factory in Gujarat

Vedanta (India) - Foxconn (Taiwan) to invest Rs 1.54 lakh crore.

India's oil-to-metals conglomerate Vedanta on Tuesday (13th September 2022) 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 facility in the state.

The MoU was signed in the presence of Minister of Railways, Communications, Electronics and Information Technology, Ashwini Vaishnaw, at a function held in Gandhinagar.

Vedanta obtained financial and non-financial subsidies including on capital expenditure and cheap electricity from Gujarat to build the semiconductor plants.

Vedanta had sought 1,000 acres of land free of cost on at 99-years lease, and water and power at concessionary and fix price for 20 years, Reuters reported. And this plants setup near Ahmedabad.

India's Chip Market

India's semiconductor market is established to reach $64 billion by 2026 from $15 billion in 2020, the government says.

Most of the world's chip output is limited to 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 for ways to have seamless access to chips.

Benefit to Indians: -

According to Chairman of Vedanta Anil Agarwal: -

What is Chipset?

A chipset acts like the motherboard's communications center and traffic controller.

It ultimately determines what components are compatible with the motherboards' like- CPU, RAM, hard drives, and graphics cards.