Vedanta to enter chip manufacturing this year after govt nod
Chairman Anil Agarwal told shareholders during the 58th General Annual meeting that Vedanta will enter the market for the manufacturing of chips and displays this year and is currently subjected to government approval.
Days after its JV partner Foxconn pulled out of the $19.5 billion chipmaking project, Vedanta said it has lined up partners for the venture without giving any further details.
“We have a government that has laser-sharp focus on creating an investment-friendly environment. A huge opportunity lies in the electronics sector. India imports $100 billion worth of electronics every year, of which around $30 billion is on semiconductors and display glass. The government led by Prime Minister [Narendra] Modi has proactively rolled out progressive policies for the domestic manufacturing of semiconductor and display fab in India. This year, subject to government approval, your company will begin a historic foray into the semiconductor fab and display fab. This will open an entirely new avenue of rapid growth for the company in the sector that is strategic for the country,” Agarwal said.
Vedanta last month resubmitted its application for setting up a 40 nanometre (nm) fabrication unit proposal to the India Semiconductor Mission, which according to Rajeev Chandrasekhar, Minister of State of Electronics and IT, is under evaluation.
Vedanta is now scouting for a new partner, but if it does not onboard one, it may have to run solo. But it would still require a production-grade technology partner, as that is one of the prerequisites for project approval and qualifying for the incentive.
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