Vedanta Says Awaiting Govt Nod For Semiconductor Manufacturing Plant In Gujarat

Vedanta Limited, a leading global natural resources company, has announced its plans to establish a state-of-the-art semiconductor manufacturing plant in Gujarat, India.

Akarsh Hebbar, global managing director at Vedanta Semiconductors and Display, stated in a statement that the metals-to-oil conglomerate has established relationships with more than 100 worldwide suppliers and ancillary sectors that would play a significant role in the semiconductor and display ecosystem.

Innolux of Taiwan is already a partner of the group's for the production of display fabs, he continued.

Vedanta Group Chairman, Anil Agarwal, recently announced the company's entry into the chip and display manufacturing market this year. This decision comes in the wake of its joint-venture partner, Taiwan's Foxconn (2354.TW), withdrawing from a $19.5 billion chip manufacturing project. Despite Foxconn's exit, Vedanta has assured that it has identified new partners for the venture, although specific details were not disclosed.

Foxconn's withdrawal was cited by Reuters as a result of stalled negotiations over securing European chipmaker STMicroelectronics (STMPA.PA) as a technology partner and a backlog of incentive approvals.

Separately, Gujarat and Foxconn are in negotiations regarding the construction of a semiconductor plant, and the Taiwanese firm has stated that it expects to apply for incentives under India's strategy for the manufacturing of semiconductors.