On Friday, Anil Agarwal, the chairman of Vedanta, announced that the metal-to-mining conglomerate is on the verge of finalizing a world-class technology partner for its semiconductor unit in India and is currently in the process of formalizing the partnership.
Agarwal reiterated the Vedanta group’s steadfast commitment to establishing India’s first semiconductor and display fabs in the Dholera Special Investment Region in Gujarat. He mentioned that significant progress has been made in securing technology and equity partners in the semiconductor industry.
During the SemiconIndia 2023 event, Agarwal informed reporters that within 2.5 years, Vedanta aims to produce chips that are made in India.
In 2022, Vedanta had entered into an agreement with Foxconn, the world’s largest contract electronics manufacturer, to establish semiconductor and display production plants in Gujarat. However, last month, the partnership was terminated, and both companies have decided to apply for India’s chip-making incentives separately.
Agarwal asserted that Vedanta has a robust cash flow and is prepared to allocate capital for the project. The company has received significant interest from potential equity and debt investors. However, they want to secure the necessary tie-ups and create a conducive ecosystem before proceeding further.
Regarding the likely investment for the initial phase of their semiconductor ambitions, Agarwal indicated that it would be around USD 5 billion.
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