According to agreements struck on Tuesday, Gujarat, the home state of Prime Minister Narendra Modi, would get a $19.5 billion investment from Vedanta Ltd. and Taiwan’s Foxconn for the construction of semiconductor and display manufacturing facilities.
According to Reuters, which broke the story first on Monday, the joint venture has received support, including cash investment and electricity from Gujarat, to build units near Ahmedabad, the western state’s biggest metropolis.
The main municipal elections for the state are soon, and Modi’s ruling alliance will face a strong challenge from the opposition parties. Gujarat said that their investment of Rs 1.54 trillion was the largest ever made by a group in an Indian state.
According to the companies, the joint venture between Vedanta and Foxconn will create more than 100,000 jobs in Gujarat.
The bulk of chips in the world are produced by a few countries, notably Taiwan, and India is actively enticing companies “to usher in a new generation of electronics production” as it searches for ways to have simple access to chips.
The Vedanta initiative intends to start producing displays and chip items within two years, according to Vedanta Chairman Anil Agarwal, who made the announcement during a public ceremony in Gujarat when an agreement was signed with state officials.
Agarwal tweeted “India’s Silicon Valley is now one step closer” following the event.
According to a statement from the state government, Vedanta would develop a display manufacturing unit with an investment of Rs 945 billion ($11.95 billion) and separate chip-related production facilities with an investment of Rs 600 billion ($7.58 billion).
Vedanta and Foxconn will work closely with the state government, according to the statement, to create high-tech clusters that have all the necessary amenities, such as power, water, and premium semiconductors.
