Vedanta-Foxconn to invest $22bn in Maharashtra for semiconductor manufacturing facility
What's the story
The Vedanta-Foxconn joint venture (JV) is all set to invest in Maharashtra. The state government will clear a proposal today to allot land to them so that they can establish a display fabrication and semiconductor manufacturing facility. The project will bring in investment in excess of Rs. 1.58 lakh crore to the state, according to Additional Chief Secretary (Industries), Baldev Singh.
Context
Why does this story matter?
To create a robust semiconductor ecosystem in the country, the Centre has announced a Rs. 76,000 crore incentive scheme. The Vedanta-Foxconn JV wants to make use of these benefits to become India's first chipmaker. However, it is not the only applicant. ISMC Analog (a JV of Dubai's NextOrbit and Israel's Tower) and Singapore-based IGSS Ventures will also run operations in the country soon.
Expectation
Over 2 lakh jobs will be created
The Maharashtra Industrial Development Corporation has issued a statement regarding the location of the project. "With a high concentration of skilled manpower, connectivity to the port, seamless domestic supply-chain, and highly developed industrial infrastructure, Talegaon in Pune has emerged as a prominent option for Vedanta and Foxconn for their $22 billion investment." It might create over two lakh direct and indirect jobs.
Information
A company delegation met the CM on Tuesday
On Tuesday, a delegation of Vedanta Electronics and Foxconn met Chief Minister Eknath Shinde and Deputy CM Devendra Fadnavis. The Vedanta team was led by the global MD of its display and semi-conductor section Avanstrate, Akarsh K Hebbar.
Details
A brief look at the JV
In February this year, Vedanta inked a pact with Taiwan-based Foxconn to form a JV for creating semiconductors in India. Vedanta holds the majority stake in the business, while Foxconn is the minority partner. The former's chairperson Anil Agarwal is the head of this joint company. The large-scale fabrication of semiconductor chips is a critical area of growth for both parties involved.