NEW DELHI (Reuters) – Mining company Vedanta and Taiwanese group Foxconn will invest $19.5 billion (19.18 billion euros) under a deal signed on Tuesday to set up factories to produce semiconductors and screens in Gujarat, Indian Prime Minister Narendra Modi’s home state.
Reuters reported on Monday that the joint venture formed by the two groups had secured grants from Gujarat, including capital expenditure and electricity, to set up factories near the state’s main city, Ahmedabad. from northwest India.
The investment, the largest ever by a group in an Indian state according to Gujarat, comes ahead of crucial local elections for Prime Minister Narendra Modi’s party, which is facing stiff opposition.
Vedanta and Foxconn said on Tuesday that the joint venture would create more than 100,000 jobs in Gujarat.
Global chip production is limited to a few states like Taiwan, but India, which is seeking to become a key player in the global semiconductor supply chain, is now attracting companies.
The Indian government has said it will extend aid beyond an initial $10 billion plan for those investing in electronics manufacturing.
Vedanta, the third company to announce the establishment of a chip manufacturing facility in India after international consortium ISMC and IGSS Ventures, plans to start manufacturing displays and chips within two years, its chairman said. Anil Agarwal.
“India’s Silicon Valley is fast approaching,” he tweeted.
(Report Munsif Vengattil and Aditya Kalra in New Delhi; with the contribution of Sumit Khanna and Yimou Lee in Taipei; French version Diana Mandiá, edited by Sophie Louet)
click here for restrictions
©2022 Reuters
