Using its 28-nanometer (nm) fab, the company will target smartphones and electronics, targeting 70-80% of the domestic market, and the rest will be exported.
According to a senior corporate executive, Indian conglomerate Vedanta has set aside USD 15 billion for its entry into the electronic chip and display manufacturing industry, with intentions to increase the investment to USD 20 billion.
Avanstrate, Vedanta’s group entity that would drive the semiconductor industry, intends to roll out electronic chips and displays from Indian manufacturing sites by 2025, according to an official with the group’s semiconductor arm on Friday.
“Semiconductor is a long-term business. We are looking at about USD 10 billion on display. Right now we are looking at USD 7 billion in semiconductors that may also go up by another USD 3 billion to further extend it. First 10 year we have engaged to invest up to USD 15 billion. We will evaluate further investment at a later stage,” Avanstrate managing director Akarsh Hebbar.
Avanstrate has applied for the establishment of a semiconductor facility as well as a display production unit.
Vedanta has struck an agreement with Foxconn, the world’s largest electronics manufacturing services firm, to develop a joint venture company that would produce semiconductors in India.
Vedanta is the first business to declare an investment in semiconductor production after the government’s announcement of a USD 10 billion (Rs 76,000 crore) programme to improve the country’s electronic chip and display ecosystem.