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Vedanta-Foxconn MoU with Gujarat to create ecosystem of ancillary industries, help MSMEs: PM Modi

Ease of Doing Business for MSMEs: The project anticipates a total investment of Rs 1.54 lakh crore and employment generation for around 1 lakh people.

Ease of Doing Business for MSMEs: Hailing the partnership between Vedanta-Foxconn group with the Gujarat government on Tuesday as an important step to accelerate India’s semiconductor manufacturing ambitions, Prime Minister Narendra Modi tweeted it will create a huge ecosystem of ancillary industries and help micro, small and medium enterprises (MSMEs).

Oil-to-metals conglomerate Vedanta and Taiwan’s electronic giant Foxconn announced signing a Memorandum of Understanding (MoU) with the Gujarat government to set up a semiconductor fab (fabrication) unit, display fab unit, semiconductor assembling unit, and testing unit in line with the Atmanirbhar Bharat initiative., according to a company statement by Vedanta.

The project anticipates a total investment of Rs 1.54 lakh crore and employment generation for around 1 lakh people, Vedanta said. The company added that India has vowed to spend $30 billion to overhaul its technology industry and build local chip supply chains to avoid being dependent on foreign producers.

Meanwhile Gujarat chief minister Bhupendra Patel also tweeted about the partnership. “Gujarat is taking a step ahead in the direction of transforming India into a self-reliant nation in manufacturing semiconductors, following PM Modi’s target to make an Atmanirbhar Bharat.”

Vedanta said the project will attract electronics ecosystem players across the value chain entailing manufacturers of highly sophisticated and sensitive equipment, materials, equipment service providers etc. “The display manufacturing unit will produce Generation 8 displays catering to small, medium and large applications,” the statement noted. Importantly, Vedanta and Foxconn announced in February that they will form a joint venture company in India.

To establish India as an electronics hub, semiconductors and displays play a critical role as they would attract suppliers and device assemblers to set up a base in India. The Indian semiconductor market was valued at $27.2 billion in 2021 and is expected to grow at a compound annual growth rate (CAGR) of nearly 19 per cent to reach $64 billion in 2026, Vedanta said.