India to get its first semiconductor manufacturing facility as Vedanta announced a joint venture with Taiwanese manufacturer Foxconn on Feb 20.
The companies will set up their manufacturing unit in Dholera Special Investment Region in Gujarat.
The joint venture is being hailed as independent India’s biggest corporate investment. Vedanta and Foxconn signed a Memorandum of Understanding with the Gujrat government to invest RS 1,54,000 crore to set up the manufacturing plant in Sept 2022.
"After a detailed site analysis in consultation with Gujarat government authorities, the joint venture entity of Vedanta and Foxconn has selected Dholera SIR for setting up their semiconductor and display manufacturing facility. The project is in the advanced stage of evaluation by the government of India," said the state government official quoted by Economic Times.
‘Gujarat Semiconductor Policy 2022-27’ was announced by the state government in July 2022 to boost semiconductor manufacturing in the state amidst global chip shortages.
The fiscal benefits of the policy include a 75% subsidy on the first 200 acres of land, water will be available at RS 12 per cubic meter for 5 years and Rs 2 per unit subsidy on electricity for the first 10 years. The government is also assisting by enhancing the Ease of Doing Business with the Gujarat State Electronics Mission acting as a single point of contact.
Vedanta is an Indian MNC with an interest in natural resources. The Mumbai-based mining company has a Market Cap of Rs 1,15,474 crore and its share is trading at Rs 307.90 on February 21 closing.
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