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Vedanta and Gujarat govt inks MoU for semiconductor project with Taiwan Foxconn

Taiwan Foxconn

Vedanta picks Gujarat for semiconductor project with Taiwan Foxconn

According to two sources who spoke to Reuters, Vedanta Ltd. has chosen Gujarat, the home state of Indian Prime Minister Narendra Modi, for its semiconductor project. This is the first significant step in the company’s $20 billion joint venture with Taiwan Foxconn. 
 
According to the first source with knowledge of the situation, Vedanta received financial and non-financial subsidies, including capital expenditure and affordable electricity from Gujarat, to establish the semiconductor factory. 
 
The source added, declining to be identified before an official announcement, that the project will comprise display and semiconductor facilities close to Ahmedabad, the state’s main city. 
 
According to a Reuters article from April, Vedanta had lobbied for incentives including 1,000 acres (405 hectares) of free land on a 99-year lease as well as water and power at set, discounted rates for 20 years.

Taiwan Foxconn

The spokespeople for Taiwan Foxconn and Vedanta did not immediately respond to requests for comment. 
 
Senior officials from the Bhupendrabhai Patel administration and the Gujarat Department of Science and Technology declined to comment. 
 
This week, the two parties are expected to sign a memorandum of understanding and make an official statement. According to the source, Patel and Vedanta representatives are likely to attend. 
 
The richest state in India, Maharashtra, and the southern states of Telangana and Karnataka had also been examined as potential sites for the Vedanta-Foxconn megaproject.

But in the most current round of talks, Gujarat defeated Maharashtra by a slim margin. 
 
The Indian semiconductor market, according to the government, would increase from $15 billion in 2020 to $63 billion in 2026. 
 
India, a late entrant, is now actively courting businesses to “usher in a new age in electronics production” as it searches for ways to have easy access to chips. A small number of countries, including Taiwan, produce the majority of the world’s chips. 
 
In February, the oil-to-metals company Vedanta decided to expand into the chip manufacturing industry and create the joint venture with Foxconn.