India’s first semiconductor plant to be set up in Gujarat

Current Affairs

  • India is going to get its first Semiconductor production plant. It is going to be set up in Ahmedabad of Gujarat. Mining conglomerate Vedanta and Taiwanese electronics manufacturing giant Foxconn will invest Rs 1.54 lakh crore in the semiconductor production plant in Gujarat.
  • The plants will be set up on a 1000-acre land in Ahmedabad.
  • “The plant will start production in two years,” Vedanta chairman Anil Agarwal told PTI after signing the memorandum of understanding (MoU) with the Gujarat government.
  • Foxconn is acting as the technical partner, while oil-to-metals conglomerate Vedanta is financing the project.
  • Vedanta and Foxconn will work closely with the state government to establish high-tech clusters with requisite infrastructure, including land, semiconductor-grade water, and power, the companies said in a joint statement.
  • The companies also said the project will create more than 100,000 jobs in Gujarat.
  • Semiconductor chips, or microchips, are essential pieces of many digital consumer products – from cars to mobile phones and ATM cards. The Indian semiconductor market was valued at $27.2 billion in 2021 and is expected to grow at a healthy CAGR of nearly 19 per cent to reach $64 billion in 2026. But none of these chips is manufactured in India so far.
  • 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 Karnataka and Tamil Nadu respectively.

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