Vedanta-Foxconn JV to set up semiconductor manufacturing facility in Gujarat
Vedanta and Foxconn have inked a Memorandum of Understanding (MoU) with the Gujarat government to set up a semiconductor manufacturing facility in the state. The pact was signed in the presence of the Union Minister for Electronics & Information Technology, Ashwini Vaishnaw. The companies will invest Rs. 1.54 lakh crore in the project, and it would create one lakh job opportunities.
Why does this story matter?
The Centre has announced a Rs. 76,000 crore incentive scheme for creating a robust semiconductor ecosystem in India. The Vedanta-Foxconn JV wants to make use of these benefits. Singapore-based IGSS Ventures and ISMC Analog (a JV of Dubai's NextOrbit and Israel's Tower) will also start similar operations in India soon. They will set up factories in Tamil Nadu and Karnataka, respectively.
Why was Gujarat selected?
The Vedanta-Foxconn JV had demanded electricity and water at concessionary and fixed prices for two decades. It also requested 1,000 acres of land free of cost on a 99-year lease. Maharashtra, Karnataka, and Telangana also wanted to bag the Vedanta-Foxconn mega project. However, Gujarat managed to be the expert negotiator. Even Prime Minister Narendra Modi has hailed this achievement.
What did PM Modi say?
'This project will make India's Atmanirbhar Silicon Valley a reality'
Celebrating the deal, Vedanta Resources Limited chairperson, Anil Agarwal tweeted, "Happy to announce that the new Vedanta-Foxconn semiconductor plant will be set up in Gujarat. Vedanta's landmark investment of Rs. 1.54 lakh crores will help make India's Atmanirbhar Silicon Valley a reality." "It will reduce the country's electronics imports and provide one lakh direct skilled jobs to people," he added.
Some key details about the JV
In February, Vedanta signed a $20 billion deal with Taiwan-based electronic manufacturing giant Foxconn to form a JV for creating semiconductors and display FABs in India. Vedanta is the majority stakeholder in the business, while Foxconn is the minority partner. Anil Agarwal is the head of this joint company. The large-scale fabrication of semiconductor chips is a lucrative venture for both parties.
