Vedanta Gets New Partner for Indian Semiconductor Unit Post Foxconn Exit

Vedanta chairman Anil Agarwal announced on Friday that the company has secured a "world-class" tech partner for its semiconductor unit. Speaking at the Semicon India 2023 event, Agarwal expressed confidence in the new tie-up and reaffirmed Vedanta's commitment to manufacturing semiconductors and display fabs in the country.

"Have already identified a world-class tech partner for semiconductor and are in the process of tying up with them," Agarwal said in his address. He also highlighted Gujarat as the ideal location to create a "Silicon Valley of India."

This news comes in the wake of a setback faced by Vedanta, as its previous plans for a semiconductor joint venture with Taiwan's Foxconn had fallen through. The deal, valued at $19.5 billion, was expected to bolster India's chipmaking ambitions and support the government's Make in India initiative to promote local manufacturing.

Foxconn, renowned for assembling iPhones and other Apple products, had initially partnered with Vedanta to set up semiconductor and display production plants in Gujarat. The collapse of this deal was a major blow for the Indian government, which has been actively working to make the country a key player in the global semiconductor ecosystem.

Vedanta is now actively discussing with three other firms for separate tie-ups in foundry, chips, and packaging and testing segments, all crucial components of a semiconductor manufacturing ecosystem. Anil Agarwal revealed in an exclusive conversation with Mint that these tie-ups are expected to materialize in the coming months.

Despite the Foxconn setback, Vedanta remains optimistic about its semiconductor venture in India. Agarwal stated that the company aims to produce its first chip within two-and-a-half years.

With the pursuit of a $300 billion electronics industry target by 2025-26, including $110 billion dedicated to semiconductors by 2029, India is making strides to emerge as a key player in the semiconductor space.

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