The Vedanta Group is advancing its plan to establish a semiconductor fabrication facility (fab) in Gujarat and has recently expressed its interest in forming strategic partnerships with Japanese technology companies. This significant move was announced by Akarsh K. Hebbar, Vedanta’s Global Managing Director for semiconductor and display business, during the Vibrant Gujarat Global Summit roadshow in Japan. The Vedanta Group envisions this venture as an $80 billion opportunity for companies willing to invest in the burgeoning electronics manufacturing hub located in Gujarat.
Hebbar highlighted Vedanta’s ambition to become the anchor for Japanese companies interested in investing in India, especially in the realm of semiconductor and display manufacturing. The company aims to set up semiconductor and display fabs in the Dholera Special Investment Region (SIR) in Gujarat. Hebbar extended an invitation to Japanese firms to collaborate with Vedanta in realizing India’s first-ever electronics manufacturing hub in the state. This hub has the potential to attract hundreds of small and medium-sized enterprises (SMEs), thus generating over one lakh jobs, a development that could significantly bolster the local economy.
AvanStrate Inc., a Vedanta group company, is headquartered in Japan and has been instrumental in forging partnerships with Japanese technology companies. In 2022, Vedanta successfully entered into agreements with 30 such Japanese companies, with the aim of fostering the development of India’s semiconductor and glass display manufacturing ecosystem. Japan, with its approximately 100 semiconductor manufacturing plants, is among the top five countries globally with a well-established semiconductor ecosystem. This collaboration is expected to bring valuable expertise and technological know-how to India’s semiconductor industry.
This move marks another milestone in Vedanta’s strategic endeavors to strengthen its presence in the semiconductor sector. Previously, the company formed a joint venture with Taiwanese electronics manufacturing giant Foxconn. This joint venture announced plans to invest a substantial $19.5 billion in setting up a semiconductor wafer fabrication plant. These investments and partnerships are essential steps to catalyze the growth of the semiconductor manufacturing sector in India, a critical component in bolstering the country’s position in the global technology landscape.
In addition to its semiconductor and display manufacturing initiatives, Vedanta has also been focused on streamlining its corporate structure. On October 12, Vedanta Ltd. announced the incorporation of a wholly-owned subsidiary called ‘Vedanta Iron and Steel Ltd’ as part of its ongoing demerger drive. This newly formed subsidiary is in alignment with the company’s plan, which was announced on September 29, to demerge its business operations. With an authorized capital of one lakh equity shares of ₹1 each, this strategic move aims to enhance the efficiency and transparency of Vedanta’s operations while creating distinct entities for its various business segments.
The Vedanta Group’s foray into semiconductor manufacturing aligns with the Indian government’s vision of making the country a hub for electronics manufacturing, creating jobs, and driving economic growth. This ambitious initiative underscores the increasing importance of semiconductor manufacturing in the global tech ecosystem and positions India as a significant player in the field.