Following an agreement signed on Tuesday, Vedanta Ltd. and Taiwan’s Foxconn will invest $19.5 billion (1.54 trillion rupees) to establish a semiconductor project in Gujarat, the home state of Indian Prime Minister Narendra Modi.
On Monday, it was revealed that Gujarat provided subsidies to the joint venture, including those for capital expenses and electricity.
They intend to construct separate facilities for producing semiconductors and displays close to Ahmedabad, the state’s capital.
Gujarat’s chief minister, Bhupendrabhai Patel, claimed the project would generate more than 100,000 jobs and that Gujarat would provide whatever assistance was necessary. It narrowly defeated Maharashtra to win.
To diversify into the chip manufacturing industry, oil-to-metals conglomerate Vedanta is funding the venture, while Foxconn serves as the technical partner.
According to Foxconn, the state’s infrastructure and the government’s active support “increase confidence in setting up a semiconductor factory.”
To become a major player in the global chip supply chain, the Indian government has stated that it will increase incentives for those investing in semiconductor manufacturing beyond an initial $10 billion plan.
After the international consortium ISMC and Singapore-based IGSS Ventures, which are established in the southern states of Karnataka and Tamil Nadu, respectively, Vedanta is the third company to announce the location of a chip plant in India.