Indian conglomerate Vedanta has earmarked $15 billion for foray into the electronic chip and display manufacturing space, and plans to scale up the investment to as much as $20 billion, a senior company official said.
Vedanta's group firm Avanstrate, which will spearhead the semiconductor business, expects to roll out electronic chips and displays from Indian manufacturing plants by 2025, the official of the group's semiconductor arm said on Friday.
"Semiconductor is a long-term business. We are looking at about $10 billion on display. Right now we are looking at $7 billion in semiconductors that may also go up by another $3 billion to further extend it. First 10 years, we have engaged to invest up to $15 billion. We will evaluate further investment at a later stage," Avanstrate managing director Akarsh Hebbar told PTI.
Avanstrate has applied for setting up a semiconductor plant and a display manufacturing unit.
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Vedanta has signed a memorandum of understanding with electronics manufacturing services giant Foxconn to form a joint venture company that will manufacture semiconductors in India.
Vedanta is the first company to make the announcement to invest in semiconductor manufacturing after the government announced a $10 billion (Rs 76,000 crore) program to boost electronic chip and display ecosystem in the country.
Vedanta is currently holding discussions with a few states to finalise the location of the chip manufacturing plant under the new joint venture.
Taipei-based Foxconn is the world's largest contract electronics manufacturer and a major supplier to iPhone maker Apple. It has recently expanded into areas, including electric vehicles (EVs) and semiconductors.
The move to set up a joint venture between India and Taipei could spark fresh tensions with China, which claims the island country as its own. China is also one of the key exporters of semiconductors to India. In 2020, India spent $15 billion on electronics imports, of which 37 percent came from China, The Wire reported.
