The group is eyeing Haryana, Gujarat, Maharashtra, Telangana, Tamil Nadu and Karnataka as one of the potential states for setting up shop
India’s semiconductor industry seems to be finally taking a step forward as Vendanta Group reportedly commits Rs 60,000 crore in the sector.
As per a report by TOI, the Anil Agarwal-led group will use the investment to set up a sophisticated chip and glass manufacturing ecosystem in India over the next three years.
This development comes a mere days after the Centre approved a Rs 76,000 crore design-linked incentive policy to build the semiconductor ecosystem in the country as part of its initiative to make India an electronics manufacturing hub.
The report added that the group will lead the charge through Japanese glass substrate manufacturer, AvanStrate.
Akarsh Hebbar, managing director of AvanStrate, told the publication that it is in the last stages of negotiations with various state governments for setting up a factory which, as per Hebbar, would require between 250 acres and 400 acres.
“Overall investments into the project will range between $6 billion (Rs 45,000 crore) and $8 billion (Rs 60,000 crore) in the first two phases, following which we will carry out further assessment of the market for expansion,” Hebbar added.
The group is eyeing Haryana, Gujarat, Maharashtra, Telangana, Tamil Nadu and Karnataka as one of the potential states for setting up shop.
“We are hoping to get an additional 10-15 per cent capital investment support from the state where we invest, apart from the central government’s subsidy.”
The investments will be for large facilities for display glass and fabrication chips, apart from an LCD module plant, Hebbar said, and added that the company is in talks with top global semiconductor manufacturers which could result in technology partnerships, or combined equity investments through a joint venture.
“The funding from our group’s side will be through equity and debt, apart from potential partnerships,” Hebbar said, adding around 80 per cent of production will be used for the domestic market, while the rest will be for exports.
The group intends to finalise its plans over the next couple of months.
