Vedanta-Foxconn sign $20 billion chip foray agreement with Gujarat

Gujarat signed a contract with Vedanta Ltd. and Foxconn of Taiwan to establish a $20 billion semiconductor complex.

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A $20 billion semiconductor plant will be established in Gujarat, the home state of Indian Prime Minister Narendra Modi, thanks to a deal struck on Tuesday between Vedanta Ltd. and Foxconn of Taiwan.

On Monday, Reuters was the first to report that Gujarat provided subsidies to the joint venture, including those for capital expenses and electricity.

They intend to construct a chip and display facility close to Ahmedabad, the major city in the western state.

Gujarat’s chief minister, Bhupendrabhai Patel, claimed the project would generate more than 100,000 employment and that Gujarat will provide whatever assistance was necessary for the project, which it narrowly defeated Maharashtra to win.

In order to diversify into the chip manufacturing industry, oil-to-metals conglomerate Vedanta is financing the project while Foxconn serves as the technical partner.

In order to become a major role in the global chip supply chain, the Indian government has stated that it will increase incentives for those investing in semiconductor production beyond an initial $10 billion plan.

After the multinational consortium ISMC and Singapore-based IGSS Ventures, which are establishing in the southern states of Karnataka and Tamil Nadu, respectively, Vedanta is the third business to announce the location of a chip production in India.