A joint venture between India’s Vedanta and Taiwan’s Foxconn will set up semiconductor and display production plants in Indian state Gujarat with an investment of $19.5 billion.
The companies on Tuesday said the Vedanta-Foxconn joint venture project will create more than 100,000 jobs in Gujarat.
The Vedanta venture aims to start manufacturing display and chip products within two years, Vedanta Chairman Anil Agarwal told a public event in Gujarat.
Vedanta will set up a display manufacturing unit with an investment of 945 billion rupees ($11.95 billion) and separate chip-related production units by investing 600 billion rupees ($7.58 billion), the state government said in its statement.
Vedanta and Foxconn will work with the state government to establish high-tech clusters with requisite infrastructure, including land, semiconductor grade water and power.
Gujarat pipped India’s richest state, Maharashtra, in a close race to win the plant location.
Foxconn is acting as the technical partner, while oil-to-metals conglomerate Vedanta is financing the project.
Foxconn said in a statement that the state’s infrastructure and the government’s support increases confidence in setting up a semiconductor factory.
The Indian government has said it will expand incentives beyond an initial $10 billion plan for those investing in semiconductor manufacturing, as it aims to become a key player in the global supply chain for chips.
Vedanta is the third company to announce a chip plant location in India after international consortium ISMC and Singapore-based IGSS Ventures, which are setting up in the southern states Karnataka and Tamil Nadu, respectively.