On Tuesday, India’s oil-to-metals conglomerate Vedanta has mentioned that the company and Foxconn the electronics manufacturing company would all together set up a semiconductor and display FAB manufacturing unit in Gujarat. Both the companies would be investing around Rs 1,54,000 crore for establishing the facility in the state. 

HIGHLIGHTS
Vedanta and Foxconn would invest 1,54,000 crore to establish the facility in state
In the presence of Ashwini Vaishnaw, the MoU was signed by both companies
Vedanta had 1,000 acres of land which was free of cost on a 99-year lease

Vedanta and Foxconn on Tuesday have even signed a memo of understanding with the Gujarat government to put up the unit within the state. The MoU was signed when there was the presence of Minister for Railways, Communications, Electronics & Information Technology, Ashwini Vaishnaw, at a function which was held in Gandhinagar.

Both the companies had to invest Rs 1,54,000 crore to put up the facility in Gujarat, which might produce one lakh job opportunities, Gujarat Chief Minister Bhupendra Patel has mentioned on the occasion. Patel has even mentioned that his government would offer cooperation to put up the facility and to make it a hit.

Prime Minister Narendra Modi on Tuesday in Tweet has mentioned that “This MoU has been considered as a vital step accelerating India’s semi-conductor manufacturing ambitions. The investment of Rs 1.54 lakh crore would produce a big impact to boost up the economy and jobs. This would even create a large ecosystem for ancillary industries and facilitate our MSMEs.'

Mr. Agarwal has mentioned that this project would be definitely help to fulfil Prime Minister Narendra Modi’s vision of making a robust manufacturing base in India. It would reduce the country’s electronics imports and would provide one lakh direct skilled jobs to individuals who were going from job seekers to job creators. 

India’s semiconductor market has been estimated to succeed in $63 billion by 2026 from $15 billion in 2020. Most of the world’s chip output has been restricted to few of the countries like Taiwan and late entrant India, which has been currently actively luring companies to “usher in a very new era in electronics manufacturing' because it would seek ways to get seamless access to chips. The company had decided in the month of February to diversify into chip manufacturing and form a joint venture with Foxconn.

As incentives, Vedanta had 1,000 acres (405 hectares) of land which was free of cost on a 99-year lease along with water and power at concessionary and fixed costs for 20 years.

Also Read: Apple's iPhone Factory Foxconn 'On Probation' Dealing With The Issue Of 'Food Poisoning'