SEMI CONDUCTOR GUJRAT

The first semiconductor plant in India will be built in Gujarat with a one-

of-a-kind investment of Rs 1.54 lakh crore from mining behemoth Vedanta
and Taiwanese electronics manufacturing giant Foxconn. On a 1000-acre
plot of land in the Ahmedabad area, the 60:40 joint venture between
Vedanta and Foxconn will build a semiconductor fabrication unit, a
display fabrication unit, and a semiconductor assembling and testing unit.

After Tuesday's Memorandum of Understanding (MoU) signing with the

Gujarat government, Vedanta Chairman Anil Agarwal assured the media
that the project will begin production in two years. Automobiles, mobile
phones, ATM cards, and other digital consumer goods all depend on
semiconductor chips, also known as microchips.

The market for semiconductors in India was valued at USD 27.2 billion in
2021, and it is anticipated that it will increase at a brisk CAGR of around
19% to reach $64 billion in 2026. But up until now, none of these chips
had been produced in India.

Electronics and the automobile sectors were among those last year that
were significantly impacted by a severe shortfall in the semiconductor
supply chain. The government introduced a fiscal incentive programme for
domestic semiconductor production to reduce reliance on imports from
countries like Taiwan and China. One of the chosen candidates for the
Production Linked Incentive (PLI) scheme for semiconductors is Vedanta-
Foxconn.