Skip to content
Search

Latest Stories

Submit Guest Post

Vedanta's $20 billion chip, display unit to start production in two years

Vedanta is seeking incentives from Modi’s government and is also in talks with several Indian states on the unit’s location.

Vedanta's $20 billion chip, display unit to start production in two years

Oil-to-metals conglomerate Vedanta chairman Anil Agarwal has said that the firm will finalise a location for its $20 billion (£15.9bn) semiconductor and display plants in India by mid-June. 

Agarwal added that the facility will have the first chip product ready in two years.


Vedanta said in February said it will diversify into chip manufacturing and announced plans to form a joint venture with Taiwan's Foxconn to support Indian prime minister Narendra Modi's drive to make India a semiconductor manufacturing hub.

The company has plans for two separate units for chip and display manufacturing.

"Foxconn is our technical partner. We may not take equity partner for the fab," Agarwal told Reuters, adding that the Apple contract manufacturer will have technical responsibility for the operation, from providing the tech to making semiconductors.

Vedanta is seeking incentives from Modi's government and is also in talks with several Indian states on the unit's location.

Agarwal said on the sidelines of the annual World Economic Forum that the first phase of Vedanta's project will entail an investment of $2bn (£1.6bn).

Private equity wants to be part of India's semiconductor expansion and there was no shortage of funds, he said, while adding that Vedanta was yet to hold talks with PE firms.

India estimates its semiconductor market will reach $63bn (£50bn) by 2026, compared with $15bn (£12bn) in 2020.

"You have to create another Taiwan in India," Agarwal said, noting that India will have to focus on bringing the entire semiconductor ecosystem locally for it to be a global powerhouse.

The Indian government has said it will expand incentives beyond an initial $10bn (£7.9bn ) plan for those investing in semiconductor manufacturing, as it aims to become a key player in the global supply chain for chips.

Add EasternEye As Your Trusted Source
preferred source on google news

More For You

asian-restaurant-raided

Falling prices for fresh produce and dairy brought modest relief to hospitality businesses in May

Getty Images/iStockphoto

Why restaurants are finally paying less for some everyday ingredients

  • UK hospitality food and drink prices fell 0.1 per cent in May, ending April's inflationary uptick.
  • Lower prices for vegetables, dairy and cooking oils helped ease overall costs for restaurants and cafés.
  • Coffee, fish, chocolate and soft drinks continued to face inflationary pressure driven by global supply challenges.

UK hospitality food prices edged lower in May, giving restaurants, cafés and pubs a small break after costs rose the previous month. However, industry experts say businesses should not assume the pressure is over, with several key ingredients still becoming more expensive because of global supply and weather-related risks.

According to the latest Foodservice Price Index published by NIQ and Prestige Purchasing, food and drink prices across the hospitality sector fell by 0.1 per cent compared with April. The slight decline suggests supply chains have remained resilient despite continued uncertainty in global commodity markets.

Keep ReadingShow less