Vedanta Group observes $3.5 bn turnover from chip business
According to a senior company official, Vedanta Group anticipates its semiconductor sector would generate revenues of between $3 and 3.5 billion, of which $1 billion will come from exports.
The joint venture partner Foxconn has all the essential contracts and technological infrastructure in place to start producing electronic chips, according to Akarsh Hebbar, worldwide managing director of Vedanta Group’s display and semiconductor business.
The Vedanta Foxconn JV is one of three companies that have applied to open semiconductor manufacturing facilities in the country. Vedanta has also applied to construct a factory for fabricating displays that will make screens for screens in electronic devices.
“We anticipate having a first-phase revenue of $3-3.5 billion by 2026-2027, when we intend to begin making a profit. This will come from a mix of semiconductors and screens. We expect exports to contribute $1 billion at that time, “Hebbar addressed PTI.
Later, Vedanta acquired Taiwanese business Avanstrate in order to enter the display fab sector.
“Foxconn alone is responsible for four foundries. On semiconductors, they spend between $30 and $40 billion. Foxconn’s S group is a very modest Foxconn subsidiary in relation to Foxconn as a whole, thus we are unable to observe it. These ecologists are arriving here. Foxconn can deliver the intellectual properties (IPs) required to produce 28 nm technology because it is a fully integrated corporation” said Hebbar.
By 2030, he claims, India would be producing 24 million notebook computers, 15 million televisions, and 1 billion smartphones annually for home usage.
“Our focus is on local consumption. For export, we will save 10% of the display and 20–25% of the semiconductor. We’ll primarily produce it for India” Hebbar remarked.
The company plans to start manufacturing semiconductors in 2025 and display modules in 2024–2025.
Vedanta will take into account creating a 28 nm chipset.
“The use of 28 nm is a tried-and-true method. Because of its operating efficiency and the operational model we are building around it, it gives the idea that we will create chipsets in our country that are both inexpensive and valuable economically. The organizational framework of our company is sound even without subsidies.”
He claims that Vedanta Group will think about generating 40,000 semiconductor panels and 60,000 display panels each month.