Vedanta to invest up to $20 billion in semiconductor business in India
New Delhi:
Indian conglomerate Vedanta has allocated $15 billion for the production of electronic chips and displays, and plans to scale up the investment to as much as $20 billion (about Rs 1.5 lakh crore), a senior company official said.
It expects to roll out display units for use in mobile phones and electronic devices and electronic chips from Indian factories by 2024 by 2025, said Akarsh Hebbar, the global general manager of display and semiconductor operations for the Vedanta Group.
“Semiconductor is a long-term business. We’re looking at about $10 billion on display. Right now, we’re looking at $7 billion in semiconductors that could also go up another $3 billion to expand it further. $15 billion investment. We will evaluate further investments at a later stage,” said Mr Hebbar.
He is also General Manager of Avanstrate, which manages the display manufacturing activities of the Anil Agarwal-led Vedanta Group.
Vedanta Group has applied to set up a semiconductor factory and display manufacturing facility under the government’s industry incentive scheme.
Mr Hebbar said the company expects to begin commercial delivery of display units and electronic chips in the 28-nanometer category by 2024 by 2025.
“Display is less complicated than semiconductor factory. It should be out at the end of 2024. Mass production will start in 2024 within six to eight months of setting up our factory. Semiconductor will be in late 2025 and can spill over to 2026.
“Our goal is to have displays by the end of 2024 and semiconductors by the end of 2025. We will focus on local demand, but 25-30 percent can also go for export,” he said.
The official went on to say that the import of electronic components into the country is about $100 billion, of which semiconductors represent $25 billion.
The group has signed an MoU with electronics manufacturer Foxconn to form a joint venture that will produce semiconductors in India, while Avanstrate will handle the display business.
Vedanta is the first company to announce investing in semiconductor manufacturing after the government unveiled a $10 billion (Rs 76,000 crore) program to boost the electronic chip and display ecosystem in the country.
