Government of Gujarat signed MOUs with Vedanta and Foxconn Group here today. The MOUs, which will result in an investment of Rs. 1.54 lakh crore, are in line with Prime Minister Narendra Modi’s vision of Aatmanirbhar Bharat and achieving self-reliance in the field of semiconductor manufacturing. The MOUs were signed in the presence of Gujarat Chief Minister Shri Bhupendra Patel and Union Minister for Electronics and Information Technology Shri Ashwini Vaishnaw in Gandhinagar.
With the signing of this MoU the largest ever investment will be done in Gujarat state by Foxconn and Vedanta Group.
Vedanta Displays Limited will setup a Display Fab Unit at Gujarat with investment of ₹94,500 Cr & Vedanta Semiconductors Limited will setup an integrated Semiconductor Fab Unit and OSAT (Outsourced semiconductor assembly and test) facility at Gujarat with investment of ₹60,000 Cr. Thus, the two MoUs, together, will bring investment of more than ₹1.54 lakh crore and generate around 1 lakh new employment opportunities in the state.
The proposed investment, by the Vedanta and Foxconn Group, for setting up of India’s first display manufacturing fab unit and an Integrated Semi-conductor fab unit with OSAT facility will further support the development of upstream and downstream electronics manufacturing clusters and establishing of healthy trade linkages. The Vedanta and Foxconn Group will work closely with the state government to establish high-tech clusters with requisite infrastructure, including land, semiconductor grade water, high quality power, logistics, and a skill ecosystem.
In addition to making India a global partner in the supply chain, the semiconductor fab unit will prove to be a game-changer for the economy. It will create significant employment opportunities for the youth and generate revenue for the state. The proposed semiconductor manufacturing fab unit will operate on the 28nm technology nodes with wafer size 300mm; and the display manufacturing unit will produce Generation 8 displays catering to small, medium and large applications.
Chief Minister of Gujarat Bhupendra Patel welcomed the Vedanta and Foxconn Group’s mega investment in the state. He said that this huge investment coming on the day when his government completes 1 year also is a testimony to the policy stability and policy support coupled with good governance & excellent infrastructure facilities existing in Gujarat. The Chief Minister assured all necessary support from the Government, and remarked that the Vedanta and Foxconn group will be welcomed with a red carpet in Gujarat instead of any red tape.
The Union Minister for Electronics and Information Technology, Ashwini Vaishnaw highlighted the importance of this investment viz-a-viz the Prime Minister Narendra Modi’s vision for achieving self-reliance in the field of semiconductor manufacturing. The minister said that it is a step in the right direction for Gujarat helping towards building a one trillion-dollar digital national economy.
Jitubhai Vaghani, Minister for Education, Science and technology Gujarat, said that this project would generate huge employment opportunities for the youth of Gujarat and India at large, while also contributing to the economy and national security.
At the MoU exchange ceremony, Brain Hope from Foxconn said that this decision of finalizing Gujarat for the prospective Semiconductor & Display fab units, was a culmination of extensive analysis of possible project sites in India and across the world, over a multiplicity of factors by sectoral ex-perts. Vedanta Group Chairman Anil Agrawal said that Gujarat has had a long history of having an investor-friendly atmosphere and a robust manufacturing base. Additionally, the recent notified semiconductor policy with excellent incentives on capital expenditure, land, water and power has made Gujarat a very compelling choice for his company huge foray into the semiconductor manufacturing sector.
It is Prime Minister Shri Narendra Modi’s vision to establish India as a global manufacturing hub & a major player for semiconductor supply chains. Under his visionary leadership, the Government of India has taken several key initiatives to reduce dependence of imports of electronic goods by giving impetus to domestic manufacturing of electronic, semiconductor products and components. To position India as the global hub for Electronics System Design and Manufacturing, the Union government has notified four schemes for the development of sustainable semiconductor and Display ecosystem, OSAT/ATMP in the country with an outlay of Rs.76,000 crore; India Semiconductor Mission [ISM], has been established under the Ministry of Electronics & Information Technology [MeitY] for this strategic sector having implications upon national security and economic sovereignty.
Gujarat is known for a policy driven approach to develop conducive business ecosystem. In line with the above initiatives of the Government of India, the Government of Gujarat has recently notified the Semiconductor Policy [2022-27] to attract investment in the semiconductor chip manufacturing sector. With the announcement of this policy, Gujarat has become the first and only state to announce a dedicated policy to support the semi-conductor and display manufacturing sector. The semiconductor policy provides fiscal and non-fiscal incentives for investors, besides ease of doing business in the state.
The Government of Gujarat has setup a dedicated office of the Gujarat State Electronics Mission, under the Department of Science & Technology, which will function as a Single Point of Contact for all necessary statutory and regulatory approvals in an expedited, proactive and transparent manner for the investors under this policy. The Mission will work to facilitate domestic electronics manufacturing in the state to create a vibrant manufacturing ecosystem.
On this occasion Additional Chief Secretary to Chief Minister Shri Pankaj Joshi, Vice President of Taiwan- based Foxconn Group Brian Hope, Mr. Akash of Vedanta Group including senior officials of GIL and Science and Technology were present.
