In accordance with agreements reached on Tuesday, Vedanta Ltd. and Taiwan’s Foxconn will invest $19.5 billion to build semiconductor and display manufacturing facilities in Gujarat, the home state of Prime Minister Narendra Modi.
The joint venture has obtained backing, including capital investment and electricity from Gujarat, to put up units close to Ahmedabad, the western state’s major city, according to Reuters, which broke the news first on Monday.
The state’s primary municipal elections are coming up, and Modi’s ruling coalition is up against a formidable fight from the opposition parties. Gujarat claimed that the Rs 1.54 trillion investment was the greatest made by any group in an Indian state.
The combined venture between Vedanta and Foxconn, according to the firms, would generate more than 100,000 employees in Gujarat.
Several nations, including Taiwan, produce the majority of the world’s chips, and India is actively luring businesses “to usher in a new age of electronics manufacturing” as it looks for methods to have easy access to chips.
At a public event in Gujarat when a deal was inked with state officials, Vedanta Chairman Anil Agarwal stated that the Vedanta project hopes to begin producing displays and chip goods within two years.
After the event, Agarwal tweeted, “India’s Silicon Valley is now one step closer.”
Vedanta will establish a display manufacturing unit with an investment of Rs 945 billion ($11.95 billion) and separate chip-related production facilities with an investment of Rs 600 billion ($7.58 billion), according to a statement from the state government.
According to the announcement, Vedanta and Foxconn will collaborate closely with the state government to develop high-tech clusters with all the required utilities, including electricity, water, and high-quality semiconductors.
