Vedanta Group Explores Collaborations with Japanese Tech Firms to Fuel Gujarat's Semiconductor Dream
Vedanta and Foxconn's Billion-Dollar Bet, India's Semiconductor Industry Heats Up
19 October 2023
Vedanta Group, a leading Indian conglomerate, is actively pursuing its plan to establish a semiconductor fab in Gujarat, offering an $80-billion investment opportunity in the growing electronics manufacturing hub.
Akarsh K Hebbar, Global Managing Director of Vedanta's semiconductor and display business, presented the vision of creating semiconductor and display fabs in Dholera SIR, Gujarat, while inviting Japanese tech companies to collaborate and potentially generate over 100,000 jobs for SMEs.
Japan, with its strong semiconductor ecosystem of around 100 manufacturing plants, is partnering with Vedanta in this endeavor, enhancing India's position in the global semiconductor market.
The Vedanta Group, a prominent Indian conglomerate, is making waves in the world of semiconductor manufacturing as it forges ahead with its ambitious plan to establish a semiconductor fab in Gujarat. During the Vibrant Gujarat Global Summit roadshow in Japan, Akarsh K Hebbar, the Global Managing Director of Vedanta's semiconductor and display business, shed light on the $80-billion opportunity awaiting companies willing to invest in Gujarat's burgeoning electronics manufacturing hub.
Hebbar outlined Vedanta's grand vision to set up semiconductor and display fabs in Dholera Special Investment Region (SIR), Gujarat. He extended an invitation to Japanese technology companies to join hands with Vedanta in realizing India's first-ever electronics manufacturing hub within the state. He also emphasized that the hub had the potential to attract a multitude of small and medium-sized enterprises (SMEs), potentially creating over one lakh jobs.
In his statement, Hebbar emphasized, "There is a $80-billion opportunity for companies willing to come and invest in this electronics manufacturing hub, and Vedanta will be the anchor for Japanese companies interested in investing in India." This partnership between Vedanta and Japanese technology firms is expected to make a significant impact on India's semiconductor and electronics manufacturing sector.
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Vedanta's significance in this endeavor is further underscored by its group firm, AvanStrate Inc, which is headquartered in Japan. Last year, AvanStrate Inc sealed agreements with 30 Japanese technology companies to foster the development of India's semiconductor and glass display manufacturing ecosystem. Japan's participation in India's semiconductor journey is especially noteworthy as it becomes the second member of the Quad, after the United States, to sign an agreement with India for the joint development of the semiconductor ecosystem. This collaboration aims to enhance the resilience of India's global supply chain.
Japan's interest in this initiative is well-founded, given its standing in the semiconductor industry. With approximately 100 semiconductor manufacturing plants, Japan is one of the top five countries boasting a robust semiconductor ecosystem. The partnership between Vedanta and Japanese companies is expected to further solidify India's position in the global semiconductor market.
Additionally, Vedanta's previous venture with Taiwanese electronics manufacturing giant Foxconn, which announced plans to invest $19.5 billion in setting up a semiconductor wafer fabrication plant, has already stirred considerable excitement in the semiconductor manufacturing space. While both firms have pledged investments in electronic chip plants in India separately, the identity of their technology partner remains undisclosed, leaving room for anticipation and speculation in the industry.