According to the sources, we came to know that Gujarat has been selected by Vedanta Ltd. as the location of its semiconductor project. The $20 billion joint venture with Taiwan’s Foxconn is now at its most important stage.
Vedanta and Semiconductor
The very first source with information on the case claims that Gujarat provided Vedanta with capital expenses and reasonably priced electricity to develop the semiconductor facility. Before such an official announcement, the insider noted that the project would include semiconductor and display facilities near to Ahmedabad, the state’s capital.
The sources claim that a report from April claimed Vedanta had fought for benefits such as 1,000 acres (405 hectares) of free land on a 99-year lease as well as water and power at the predetermined, discounted rates for 20 years. As per the sources, the spokespeople for Foxconn and Vedanta did not immediately respond to calls for comments. Senior officials from the Bhupendrabhai Patel administration and the Gujarat Department of Science and Technology refused to respond.
Expecting an Announcement
This week, the two parties are expected to sign a protocol of agreement and make an official statement. Representatives from Patel and Vedanta are probably going to be there, the source said. The richest state in India, Maharashtra, and the southern states of Telangana and Karnataka had also been examined as potential sites for the Vedanta-Foxconn megaproject.
But in the latest round of talks, Gujarat defeated Maharashtra by a slim margin. The Indian semiconductor market, according to the government, would increase from $15 billion in 2020 to $63 billion in 2026.
The majority of chips are produced by a few groups of countries, notably Taiwan, and India, a late entrant, is now actively courting corporations to “usher in a new century in electronics production” as it seeks to have simple access to chips. In February, the oil-to-metals company Vedanta decided to expand into the semiconductor industry and form a joint venture with Foxconn.