- India to set up first chip factory in Gujarat.
- Vedanta and Foxconn to collaboratively invest Rs 1.54lakh crore.
- The 60:40 joint venture will be set up on 1000 acre land.
Gujarat: India’s first chip factory will be set up in Gujarat sources said on Tuesday. The 1000-acre plant will see an Rs1.54 lakh crore investment said, Vedanta chairman who signed an MoU with the Gujarat Govt today.
The maiden chip factory for its technical support will have Foxconn on its side while the oil-to-metal conglomerate finances the project. As per the joint statement by the investors – Vedanta and Foxconn will work closely with the state government to establish high-tech clusters with requisite infrastructure, including land, semiconductor-grade water, and power.
Semiconductor chips, or microchips, are essential pieces of many digital consumer products – from cars to mobile phones and ATM cards. The Indian semiconductor market was valued at $27.2 billion in 2021 and is expected to grow at a healthy CAGR of nearly 19 per cent to reach $64 billion in 2026. But none of these chips is manufactured in India so far.
Vedanta is the third in line to announce a chip location plant in India. Earlier an international consortium of ISMC and Singapore-based IGSS Venture.
This move aims to cut dependence on imports from nations like Taiwan and China, the government brought a fiscal incentive scheme for manufacturing semiconductors in the country.