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India’s Vedanta budgets $15 billion for electronics entry

India’s Vedanta budgets $15 billion for electronics entry

Business news |
By Peter Clarke



India’s metals and mining conglomerate Vedanta Group has assigned a budget of $15 billion to spend on establishing itself in semiconductor and display manufacturing. The company said it could subsequently scale up the investment to $20 billion.

Vedanta announced a joint venture partnership to help it get into chip manufacturing with Foxconn a few days ago. It is the first company to come out with a plan to enter chip manufacturing on the Indian sub-continent following the government’s announcement of an incentive scheme (see Foxconn heads to India for JV wafer fab and India details wafer fab subsidy scheme favoring 28nm).

A senior official told the Press Trust of India (PTI) that subsidiary company Avanstrate will spearhead the entry into semiconductors and displays with production expected to start in 2025.

 Avanstrate’s managing director

“Semiconductor is a long-term business. We are looking at about $10 billion on display. Right now, we are looking at $7 billion in semiconductors that may also go up by another $3 billion to further extend it. In the first ten years we have engaged to invest up to $15 billion. We will evaluate further investment at a later stage,” Avanstrate managing director Akarsh Hebbar told PTI.

Elsewhere the breakdown was given as $7 billion to $8 billion to be spent on a wafer fab and $3 billion to $4 billion to be spent on a display manufacturing factory.

The chip manufacturing investment is set to be done through a joint venture with Foxconn. Foxconn has said it invest US$118.7 million for a 40 percent stake in the company.

Related links and articles:

Foxconn heads to India for JV wafer fab

India details wafer fab subsidy scheme favoring 28nm

Report: Pakistan asks China to help with chip ambitions

Report: India plans $10 billion semiconductor subsidy

India asks Taiwan to include wafer fab in trade deal

Tata plans to make semiconductors in India

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