Vedanta to begin historic foray into semiconductor and display fab after govt nod: Anil Agarwal

Just days after Foxconn pulled out from its joint venture with oil-to-metal conglomerate Vedanta to set up a semiconductor fabrication unit, the latter remains bullish about setting up a semiconductor and display fab in the country. Addressing shareholders during the 58th General Annual meeting, Vedanta Chairman Anil Agarwal said the company will begin its historic foray into semiconductor and display fab after it receives government approvals. He also stated that the company has lined up partners for the venture.

“We have a government that has laser-sharp focus on creating an investment-friendly environment. A huge opportunity lies in the electronics sector. India imports $100 billion worth of electronics every year, of which around $30 billion is on semiconductors and display glass. The government led by Prime Minister [Narendra] Modi has proactively rolled out progressive policies for the domestic manufacturing of semiconductor and display fab in India. This year, subject to government approval, your company will begin a historic foray into the semiconductor fab and display fab. This will open an entirely new avenue of rapid growth for the company in the sector that is strategic for the country,” Agarwal said.

He added that Vedanta’s subsidiary AvanStrate, the fourth largest manufacturer of glass substrate in the world, has niche patented technology and is one among only four global companies to own this. “We have lined up partners for our semiconductor venture. With these ventures, we will enable our youth to access to affordable electronic devices that will help them fulfil their aspirations,” added Agarwal.

Just last month, Vedanta resubmitted its application for setting up a 40 nanometre (nm) fabrication unit proposal to the India Semiconductor Mission, which according to Rajeev Chandrasekhar, Minister of State of Electronics and IT, is under evaluation. Vedanta is now scouting for a new partner, but if it does not onboard one, it may have to run solo. But it would still require a production-grade technology partner, as that is one of the prerequisites for project approval and qualifying for the incentive. Earlier this year, the JV was rumoured to be in talks with Europe-based STMicrotechnogies. However, the details of the technology partner have been kept under wraps.