Vedanta Group, a mining frontrunner, is reportedly set to begin constructing its Rs 1.5 lakh crore (USD 183 billion) semiconductor plant during October-December this year to produce electronic chips by the first half of 2027.
Apparently, the joint venture (JV) of Vedanta and leading electronics manufacturer, Foxconn has finalized the Dholera Special Investment region located near Ahmedabad to establish the semiconductor and display manufacturing unit.
Global managing director of Vedanta’s Semiconductor and Display business, Akarsh Hebbar and the CEO of Vedanta-Foxconn Semiconductors Ltd., David Reed revealed that the group had submitted all the technology tie-ups to the government banks.
It is also disclosed that the banks might fund the project costs in the 70 and 30 ratio (from the company) after adjusting the subsidy.
According to Reed, the company is planning to organize the first shovel ceremony by the fourth quarter of 2023 and is working on all measures to have the revenue by 2027. To begin with, it would start with 5,000 wafers during the first part of 2027 and will then incrementally take it up to 40,000 wafers a month.
Reed also claimed that the company will manufacture 28 nm wafers simultaneously considering its requirement for the same equipment for 40 nm.
According to Hebbar, the team is bringing in the 28 nm, 40 nm tried and tested technology, which emerged as the best for the decently priced automobiles, ICT devices, and smartphones.
Hebbar disclosed that the company will be making 60% of every electronic device in India with semiconductors and displays.
He further mentioned that the chip production would be bringing in hundreds of micro, small and medium businesses to begin making their own mobile phones like in China.
Apparently, the Centre is providing a 50% subsidy on the overall cost of the project.
Vedanta will also be setting up outsourced semiconductor assembly and test (OSAT) plant for processing the semiconductor wafers to make them usable for the automobile and electronics companies.
Source Credits: Vedanta expects to start building semiconductor plant by Oct-Dec quarter (business-standard.com)