Foxconn, Vedanta to invest $19.5B in Indian state for chip project

foxconn vedanta invest 19

India’s Vedanta Ltd and Taiwan’s Foxconn will invest $19.5 billion (1.54 trillion rupees) under a pact to set up a semiconductor project in Gujarat, Indian Prime Minister Narendra Modi’s home state.

The plan is to build separate units for semiconductor and display production near Ahmedabad, the western state’s largest city.

Gujarat Chief Minister Bhupendrabhai Patel said the venture would create over 100,000 jobs, and the state was prepared to extend any support to the project, which the state won in a close race with India’s richest state, Maharashtra.

Foxconn is acting as the technical partner, while oil-to-metal conglomerate Vedanta is financing the project as it looks to diversify into chip manufacturing.

In a statement, Foxconn said the state’s infrastructure and the government’s active support increased confidence in setting up a semiconductor factory.

The Indian government has said it would expand incentives beyond an initial $10 billion plan for those investing in semiconductor manufacturing, as it aims to become a key player in the global supply chain for chips.

Vedanta becomes the third company to announce a chip plat location in India after Singapore-based IGSS Ventures and international consortium ISMC, which are setting up in the southern states of Tamil Nadu and Karnataka, respectively.