Gujarat Signs MoU with Vedanta-Foxconn Group to Setup Semiconductor and Display Manufacturing Units

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In a landmark decision, Vedanta Limited has decided to invest more than ?1.54 lakh crores in Gujarat. Vedanta Displays Limited will setup a Display Fab Unit at Gujarat with investment of ?94,500 Cr & Vedanta Semiconductors Limited will setup an integrated Semiconductor Fab Unit and OSAT facility at Gujarat with investment of ?60,000 Cr. Thus two MoUs, together, will bring investment of more than ?1.54 lakh crores and generate around 1 lakh new employment opportunities in the state.

The proposed investment, by the Vedanta and Foxconn Group, for setting up of India’s first display manufacturing fab unit and an Integrated Semiconductor fab unit with OSAT facility will further support the development of upstream and downstream electronics manufacturing clusters and establishing of healthy trade linkages. The Vedanta and Foxconn Group will work closely with the state government to establish high-tech clusters with requisite infrastructure, including land, semiconductor grade water, high quality power, logistics, and a skill ecosystem.

In addition to making India a global partner in the supply chain, the semiconductor fab unit will prove to be a game-changer for the economy. It will create significant employment opportunities for the youth and generate revenue for the state. The proposed semiconductor manufacturing fab unit will operate on the 28nm technology nodes with wafer size 300mm; and the display manufacturing unit will produce Generation 8 displays catering to small, medium and large applications.

It is PM Modi’s vision to establish India as a global manufacturing hub & a major player for semiconductor supply chains. Under his visionary leadership, the Government of India has taken several key initiatives to reduce dependence of imports of electronic goods by giving impetus to domestic manufacturing of electronic, semiconductor products and components. To position India as the global hub for Electronics System Design and Manufacturing, the Union government has notified four schemes for the development of sustainable semiconductor and Display ecosystem, OSAT/ATMP in the country with an outlay of Rs.76,000 crore; India Semiconductor Mission [ISM], has been established under the Ministry of Electronics & Information Technology [MeitY] for this strategic sector having implications upon national security and economic sovereignty.

The Vedanta and Foxconn Group has entered into two Memorandums of Understanding [MoUs] with the Government of Gujarat here today, on the 13th of September 2022, in presence of Honorable Chief Minister of Gujarat Shri Bhupendrabhai Patel and Honorable Union Minister for Electronics and Information Technology Shri. Ashwini Vaishnaw. The Minister for Education, Science and Technology for the Government of Gujarat Shri Jitubhai Vaghani was also present on the occasion.

Chief Minister of Gujarat Shri Bhupendrabhai Patel welcomed the Vedanta and Foxconn Group’s mega investment in the state. He said that this huge investment coming on the day when his government completes 1 year also is a testimony to the policy stability and policy support coupled with good governance & excellent infrastructure facilities existing in Gujarat. The Chief Minister assured all necessary support from the Government, and remarked that the Vedanta and Foxconn group will get with red carpet in Gujarat instead of any red tape.  Shri Jitubhai Vaghani, Minister for Education, Science and technology Gujarat, said that this project would generate huge employment opportunities for the youth of Gujarat and India at large, while also contributing to the economy and national security.

The Union Minister for Electronics and Information Technology, Shri Ashwini Vaishnaw, present on the occasion highlighted the importance of this investment viz-a-viz the Honorable Prime Minister’s vision for achieving self-reliance in the field of semiconductor manufacturing.  The minister said that it is a step in the right direction for Gujarat helping towards building a one trillion-dollar digital national economy.

At the MoU exchange ceremony, Mr. Brain Ho from Foxconn said that this decision of finalizing Gujarat for the prospective Semiconductor & Display fab units, was a culmination of extensive analysis of possible project sites in India and across the world, over a multiplicity of factors by sectoral experts.  Vedanta Group Chairman Shri Anil Agrawal, also present at the event, said that Gujarat has had a long history of having an investor-friendly atmosphere and a robust manufacturing base. Additionally, the recent notified semiconductor policy with excellent incentives on capital expenditure, land, water and power has made Gujarat a very compelling choice for his company huge foray into the semiconductor manufacturing sector.

Gujarat is known for a policy driven approach to develop conducive business ecosystem. In line with the above initiatives of the Government of India, the Government of Gujarat has recently notified the Semiconductor Policy [2022-27] to attract investment in the semiconductor chip manufacturing sector. With the announcement of this policy, Gujarat has become the first and only state to announce a dedicated policy to support the semiconductor and display manufacturing sector.  The semiconductor policy provides fiscal and non-fiscal incentives for investors, besides ease of doing business in the state.

The Government of Gujarat has setup a dedicated office of the Gujarat State Electronics Mission, under the Department of Science & Technology, which will function as a Single Point of Contact for all necessary statutory and regulatory approvals in an expedited, proactive and transparent manner for the investors under this policy. The Mission will work to facilitate domestic electronics manufacturing in the state to create a vibrant manufacturing ecosystem.

Vedanta Limited is a vastly diversified Indian multinational company which has prominent presence in the power generation, mining, oil & gas sectors. It has a revenue of over US $20 Billion.  Vedanta operates across India, South Africa, Liberia and Namibia and has a presence in electronics and technology business through group companies Avanstrate Inc. and Sterlite Technologies.

Hon Hai Technology Group, also known as Foxconn internationally, is a Taiwanese multinational electronics manufacturer ranked 22nd in the 2021 Fortune Global 500. It has broad semiconductor manufacturing expertise starting from equipment, wafer fab, OSAT, design service, and IC design and finished product assembly service. It has presence in 24 countries around the globe, including in India and one of the largest electronics manufacturers.