PM Modi expresses optimism as Vedanta to set up chip making unit in Gujarat

New Delhi: Prime Minister Narendra Modi expressed optimism on Tuesday after the signing of a ₹ 1.54 trillion pact between with Vedanta-Foxconn Group and Gujarat government for setting up a semiconductor and display fabrication manufacturing unit in the state, the Prime Minister’s Office (PMO) said in a statement.

According to a statement by the PMO, the prime minister said the proposed investment will boost the economy, generate jobs and also help in creating a ecosystem for ancillary industries aiding MSMEs.

“This MoU is an important step accelerating India’s semi-conductor manufacturing ambitions. The investment of ₹1.54 lakh crore will create a significant impact to boost economy and jobs. This will also create a huge ecosystem for ancillary industries and help our MSMEs,” the prime minister tweeted.

Vedanta Ltd. along with Taiwan’s Foxconn on Tuesday signed a pact with the Gujarat government for investing ₹1.54 trillion to set up a semiconductor and display FAB manufacturing unit in the state.

As per the memorandum of understanding (MoU), Vedanta Displays Ltd. will setup the display FAB unit at an investment of ₹94,500 crore and Vedanta Semiconductors Ltd. will set up an integrated semiconductor manufacturing unit and OSAT facility for ₹60,000 crore. Foxconn will be the technical partner.

“The proposed semiconductor manufacturing fab unit will operate on the 28nm technology nodes with wafer size 300 mm; and the display manufacturing unit will produce Generation 8 displays catering to small, medium and large applications,” as per a joint statement.