Vedanta, Foxconn sign $20-billion deal with Gujarat for semi-conductor project
Vedanta Ltd and Taiwan’s Foxconn signed an agreement on Tuesday with the state of Gujarat, Prime Minister Narendra Modi’s home state, to set up a $20-billion semi-conductor project.
Reuters was first to report on Monday that the joint venture obtained subsidies, including on capital expenditure and electricity, from Gujarat. They JV plans to build a chip and display facilities near Ahmedabad, the agency report said.
‘Creating 1 lakh jobs’
Gujarat Chief Minister Bhupendrabhai Patel said the venture would create more than 100,000 jobs, and that the state was prepared to extend any support to the project, which it won in a close race with Maharashtra.
Foxconn is acting as the technical partner, while oil-to-metals conglomerate Vedanta is financing the project as it looks to diversify into chip manufacturing.
Foxconn said in a statement that the state’s infrastructure and the government’s active support “increases confidence in setting up a semi-conductor factory”.
Govt to expand incentives
The Indian government has said it will expand incentives beyond an initial $10-billion plan for those investing in semi-conductor manufacturing, as the country aims to become a key player in the global supply chain for chips.
Vedanta is the third company to announce a chip plant location in India after international consortium ISMC and Singapore-based IGSS Ventures, which are setting up projects in the southern states Karnataka and Tamil Nadu, respectively.