Vedanta to invest Rs 60 thousand crores in semiconductors; Anil Agarwal

NEW DELHI: Days after the government announced a mega stimulus package to bring semiconductor investments into the country, Anil Agarwal’s Vedanta Group has said it will invest Rs 60,000 crore to set up a sophisticated chip and glass manufacturing ecosystem in India. will invest up to the next three years.

It is also finalizing technology and equity partnerships and joint ventures with top construction manufacturers around the world. This is Agarwal’s second attempt to bring semiconductor investments into India. The new charge will be led through Japanese glass substrate maker Avanstrat, which Vedanta acquired from the Carlyle Group in December 2017.

“We are in the final stages of talks with various state governments to set up a factory, which would require between 250 acres and 400 acres. The total investment in the project will be between $6 billion (Rs 45,000 crore) and $8 billion (Rs 60,000 crore) in the first two phases, after which we will further evaluate the market for expansion,” told Akarsh Hebbar, Managing Director, Avanstreet .

Hebbar said Avanstrat is in talks with the governments of Haryana, Gujarat, Maharashtra, Telangana, Tamil Nadu and Karnataka to set up its factory and encourage it. “We are looking forward to receiving an additional 10-15% capital investment support from the state where we invest, in addition to the central government subsidy.” The investment will be for larger facilities for display glass and fabrication chips in addition to an LCD module plant, and said the company is in talks with top global semiconductor makers such as Taiwanese manufacturers TSMC, United Microelectronics Corp. LG and Samsung, and Japanese Sharp.

Negotiations may result in technology partnerships, or joint equity investments through joint ventures. “We intend to finalize our plans in the next few months.” Hebbar said Vedanta Group and its Chairman Agarwal are excited about the prospects of the semiconductor industry in India, especially given the strong demand from the consumer electronics segment, the automobile industry and allied sectors.

Despite being a significant consumption market for semiconductor-led industries, India does not have a chip manufacturing ecosystem and depends entirely on costly imports. “The funding from our group will be through equity and debt, in addition to potential partnerships,” Hebber said, adding that “about 80% of the production will be used for the domestic market, while the rest will be for exports.”