Vedanta plans to join the semiconductor manufacturing this year

Two days after the company and Foxconn ended their joint venture to produce semiconductors in the country, Vedanta Ltd's chairman Anil Agarwal said the company plans to enter the semiconductor manufacturing business this year and has lined up partners for the initiative.

"We are partnering on a semiconductor project. Agarwal announced at the firm's annual general meeting on Wednesday that your company would start a historic foray into semiconductor fab and display fab this year, subject to government permissions. For the corporation, "this will open an entirely new avenue of rapid growth in a sector that is strategic for the country," he said.

Currently, India imports $100 billion worth of electronics annually, of which $30 billion goes to semiconductors and display glass alone. In February 2022, Foxconn and Vedanta announced a $19.5 billion joint venture to produce semiconductors and display panels in India. This made them one of the first few companies to join the government's crucially important India Semiconductor Mission.

The country's first company in the integrated semiconductor and display fab sector, Vedanta Group announced last week that it will purchase the semiconductor and display assets from sibling company Twin Star Technologies Ltd. The fourth-largest producer of glass substrate in the world, AvanStrate, is also owned by the business. The company, which specialises in natural resources, is also active in the production of oil and gas, aluminium, zinc, copper, steel, and iron ore. "Our strong presence in the natural resources sector is expected to yield even stronger returns in the coming years," added Agarwal.

He underlined domestic manufacturing and asserted that the government's commitment on fostering an investment-friendly climate will benefit the nation because the world views India as a powerhouse for manufacturing. As India's most diversified natural resource corporation, your business is in a good position to take advantage of this significant opportunity. This year, Vedanta plans to invest $1.7 billion in capital projects for expansion.