Modi optimistic on Vedanta's setting up of chip unit in Gujarat

Prime Minister Narendra Modi has expressed optimism after Government of Gujarat signed an MoU of ₹1.54 lakh crore with Vedanta-Foxconn Group for the manufacture of semiconductor and display fab, the Prime Minister’s Office (PMO) said in a statement.

According to a statement by the PMO, the Prime Minister also pointed out that the investment will create a significant impact to boost economy and jobs while also help in creating a huge ecosystem for ancillary industries and thereby helping our MSMEs.

Sharing a tweet by Gujarat Chief Minister Bhupendra Patel, PM Modi tweeted, “This MoU is an important step accelerating India’s semi-conductor manufacturing ambitions. The investment of ₹1.54 lakh crore will create a significant impact to boost economy and jobs. This will also create a huge ecosystem for ancillary industries and help our MSMEs.”

Earlier in the day, Vedanta Ltd. along with Taiwan’s Foxconn on Tuesday signed pact with the Gujarat government for investing ₹1.54 trillion to set up a semiconductor and display FAB manufacturing unit in the state.

As per the memorandum of understanding (MoU), Vedanta Displays Ltd. will setup the display FAB unit at an investment of ₹94,500 crore and Vedanta Semiconductors Ltd. will set up an integrated semiconductor manufacturing unit and OSAT facility for ₹60,000 crore. Foxconn will be the technical partner.

“The proposed semiconductor manufacturing fab unit will operate on the 28nm technology nodes with wafer size 300 mm; and the display manufacturing unit will produce Generation 8 displays catering to small, medium and large applications,” a joint statement released on Tuesday read.