Vedanta and Foxconn sign agreement with Indian state for $20 billion semiconductor unit

Indian oil-to-metals giant Vedanta and global manufacturing giant Foxconn have signed a memorandum of understanding with the Indian state of Gujarat to set up a $20 billion semiconductor unit in the coastal state that is home to Prime Minister Narendra Modi, officials said on Tuesday.

Foxconn will bring technical expertise to the venture, while Vedanta, which has mining experience, will fund the project, senior officials said. The state of Gujarat will offer capital cost and power subsidies for the project.

The state of Gujarat will “offer all possible assistance in this project,” Chief Minister Bhupendrabhai Patel said. “Every state department will also provide all possible assistance to make this project a success.”

Tuesday’s move is the latest step in India’s growing ambition to expand its hardware manufacturing power as the world’s second-most populous nation works to become self-sufficient. New Delhi has launched several incentive programs worth over $10 billion to attract global giants to local manufacturing in India.

“Electronics manufacturing in India has already created about 25 lakh (2.5 million) jobs. Modi ji has now given us the target to expand this employment record from 25 lakhs to 1 crore jobs (10 million). This means we have to increase the electronics manufacturing in the country from $80 billion to $300 billion,” Ashwini Vaishnau, India’s information technology minister, said on Tuesday. “Spectrum and silicon are the two main raw materials of today’s digital world… The world will watch as India quickly establishes itself as a very strong player in semiconductors.”

This is a developing story. More to follow…

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