The possibility of a semiconductor chip industry taking its foothold in India is finally a reality. The Vedanta Group, headed by Anil Agarwal, has partnered with the Taiwan-based tech mogul Foxconn to start manufacturing chips in India. While not many details are yet available, the venture seems quite promising.
An MoU has been signed between the two to formulate a joint venture, with Vedanta being the primary shareholder. Foxconn has announced a total of $118.7 million to be given as investment for the venture. While they will provide much-needed technical expertise, the process will very much be headed by Vedanta.
Officials from Vedanta have stated that their next three-year plan is to set up a state-of-the-art chip manufacturing industry. This will also be the first-ever joint venture in the electronics manufacturing segment in India. The company has secured a fund of 60,000 crores to invest in this project. The Indian government has also promised further investments in the semiconductor manufacturing sector.
There is currently a global shortage in chips production, and the supply chains of various big tech companies are under fire. Formed in 1965, Vedanta Ltd. is one of India’s largest mining companies; now, they will be leading the semiconductor chip revolution. Once the industry is up and running, it can be expected that India will become a significant hub for the massive demand for semiconductor chips.
A location for the manufacturing site is yet to be decided on. However, the group is in talks with multiple heads of state. The industry will also be used to build LCD glass substrates for smart devices. A recently formed semiconductor industry in Taiwan is also performing at maximum capacity; hence once established, the same is expected for India.
