New Delhi: Days after Vedanta group’s Taiwanese partner pulled out of a $19.5 billion semiconductor-making project, company chairman Anil Agarwal Wednesday said partners have been lined up for the venture and Vedanta will begin foray into chip making this year.
Agarwal however did not identify the partner.
Hon Hai Technology Group, also known as Foxconn, earlier this week pulled out of the chipmaking joint venture with Vedanta and said it intends to apply for incentives under the government’s semiconductor production plan.
Just last week, Vedanta had said it will acquire semiconductor and display glass units from a group company.
Most of the world’s chips are manufactured in a handful of countries and India, which expects its semiconductor market to be worth $63 billion by 2026, is a late entrant. Semiconductors find wide applications and are used in devices such as mobile phones to refrigerators and in cars.
Speaking at Vedanta’s annual shareholder meeting, Agarwal said there was a huge opportunity in the electronics sector as India imports $100 billion worth of electronics every year. This includes $30 billion worth of semiconductor and display glass.
“We have lined up partners for our semiconductor venture,” he said without mentioning of the Foxconn pullout. “This year, subject to government approvals, your company will begin a historic foray into semiconductor fab and display fab.”
Soon after Foxconn announced pulling out of the venture Monday, Vedanta had said it was fully committed to its semiconductor project and has lined up other partners to set up India’s first foundry.
“We have the licence for production-grade technology for 40 nm from a prominent integrated device manufacturer,” it had said in a statement, without identifying the firm supplying the technology. “We will shortly acquire a licence for production-grade 28 nm as well.”
Agarwal said a foray into semiconductor manufacturing will open an entirely new avenue of rapid growth for the company in a sector that is strategic for the country.
Its subsidiary AvanStrate, the 4th largest manufacturer of glass substrate in the world, has the niche patented technology and is one among the only four global companies to own this, he said.
The semiconductor and display glass ventures will “enable our youth to have access to affordable electronic devices which will help them fulfill their aspirations,” he said.
Foxconn is reported to be in talks with several local and international partners to make semiconductors in India using mature chip manufacturing technology for products including EVs.
PTI
