India’s Vedanta Resources will partner with Taiwan contract electronics giant Foxconn to build $20 billion semiconductor and display plants in India, with the announcement of the location imminent.
Vedanta chairman Anil Agarwal said on Wednesday that the Mumbai-founded, London-headquartered company would have the first chip product ready in two years.
Oil-to-metals conglomerate Vedanta said in February it would diversify into chip manufacturing and announced plans to form a joint venture with Foxconn. It will announce the location of the chip hub in June, Agarwal said.
Vedanta said it supports Prime Minister Narendra Modi’s drive to make India a semiconductor manufacturing hub.
“Foxconn is our technical partner,” Agarwal said. “We may not take [an] equity partner for the fab,” he added referring to the chip fabrication plant.
In an interview in Davos, Agarwal said the Apple contract manufacturer would provide the technology for making semiconductors.
Vedanta is seeking incentives from Modi’s government and is also in talks with several Indian states on the unit’s location.
Agarwal said on the sidelines of the annual World Economic Forum that the first phase of Vedanta’s project will entail an investment of $2 billion.
- Reuters, with additional editing by George Russell