Vedanta to invest up to $20 billion in India’s semiconductor industry
New Delhi:
Indian conglomerate Vedanta has earmarked $15 billion for a foray into the chip and display manufacturing space, and plans to increase the investment up to $20 billion (about Rs 1.5 lakh crore ), a senior company official said.
It plans to roll out display units, for use in mobile phones and electronic devices, by 2024 and microchips from Indian manufacturing plants by 2025, the global managing director of display business has said. and semiconductor group Vedanta, Akarsh Hebbar.
“Semiconductors is a long-term business. We’re looking at about $10 billion exposed. Right now we’re looking at $7 billion in semiconductors which could also grow another $3 billion for the expand further. The first 10 years, we have committed to invest up to $15 billion. We will assess further investments at a later stage,” Hebbar said.
He is also managing director of Avanstrate, which manages the display manufacturing business of the Vedanta group headed by Anil Agarwal.
The Vedanta Group has applied for the establishment of a semiconductor factory and a display manufacturing unit under the government’s incentive program for the sector.
Hebbar said the company plans to begin commercial supply of display units by 2024 and microchips in the 28-nanometer category by 2025.
“Display is less complicated than semiconductor manufacturing. It would be released by the end of 2024. Mass production will begin within six to eight months of setting up our factory by 2024. semiconductors will be at the end of 2025 and could spill over to 2026.
“Our goal is to do display by the end of 2024 and semiconductors by the end of 2025. We will focus on local demand, but 25-30% could also be for export” , did he declare.
The official further said that imports of electronic components into the country amount to about $100 billion, including $25 billion for semiconductors.
The group has signed a memorandum of understanding with electronics giant Foxconn to form a joint venture that will manufacture semiconductors in India while Avantstrate will manage the display business.
Vedanta is the first company to announce plans to invest in semiconductor manufacturing after the government unveiled a $10 billion (Rs 76,000 crore) scheme to boost the microchip and display ecosystem in the country.
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