India is going to get its first Semiconductor production plant. It is going to be set up in Ahmedabad of Gujarat. Mining conglomerate Vedanta and Taiwanese electronics manufacturing giant Foxconn will invest Rs 1.54 lakh crore in the semiconductor production plant in Gujarat.
Vedanta and Foxconn will build a semiconductor fabrication unit, a display fabrication unit & a semiconductor assembling and testing unit. The plants will be set up on a 1000-acre land in Ahmedabad and the production will begin in two years, said Vedanta chairman Anil Agarwal. The company has signed a memorandum of understanding (MoU) with the Gujarat government.
From cars to mobile phones and ATM cards. the semiconductor chips, or microchips, are a essential part of many digital products. As per reports, the Indian semiconductor market, which was valued at USD 27.2 billion in 2021, is expected to grow at a healthy CAGR of nearly 19 per cent. It is estimated to reach up to $64 billion in 2026. But none of these chips is manufactured in India so far.
The electronics and automotive industries faced massive shortage in the semiconductor supply chain last year.
Vedanta is the third company to announce a chip plant location in India after international consortium ISMC and Singapore-based IGSS Ventures, which are setting up in Karnataka and Tamil Nadu respectively.
Vedanta Chairman Anil Agarwal said,” ‘Made in India’ semiconductors could drastically reduce the prices of finished products”. As per the Chairman the cost of a laptop can decrease from Rs 1 lakh to Rs 40,000 or less if the glass as well as the semiconductor chip are available in the country.
“The glass that is currently being produced in Taiwan and Korea will very soon be manufactured in India too,” Agarwal, the founder of one of the largest mining companies in India, said.
Ms Kalinga