Business news | $19 billion India semiconductor facility to be built by Vedanta and Foxconn

A $19.5 billion (£16.9 billion) project to create one of India's first semiconductor plants has been launched by Foxconn and Vedanta.

The Indian mining behemoth and the Taiwanese company are collaborating as the government works to increase chip production in the nation.

Last year, the administration of Prime Minister Narendra Modi unveiled a $10 billion package to entice investors.

Incentives have been given for the plant, which will be built in Gujarat, the home state of Mr. Modi.

Anil Agarwal, chairman of Vedanta, stated that they were still searching for a location with roughly 400 acres of land close to Ahmedabad, the capital of Gujarat.

However, it has historically been difficult for both Indian and foreign businesses to get sizable parcels of land for projects. Experts also claim that despite Mr. Modi's signature "Make in India" strategy, which was created to draw in foreign manufacturers, there are still difficulties in navigating the bureaucracy in the nation.

Bhupendrabhai Patel, the chief minister of Gujarat, asserted that the project "would be received with red carpet... instead of any red tape."

The project is anticipated to generate 100,000 employment in the state, which will hold elections in December and where the BJP will face fierce opposition.

The Memorandum of Understanding states that the factory should begin producing chips in two years.

Mr. Agarwal tweeted that "India's own Silicon Valley is a step closer now."

India has promised to spend $30 billion to revamp its IT sector. The government said that to lessen its reliance on chip manufacturers in nations like Taiwan, the US, and China, it will also increase incentives for chipmakers beyond the first $10 billion.

"Gujarat has won praise for its advancement of the industry, green energy, and smart cities. Building a semiconductor factory becomes more confident as a result of the government's active and strong assistance and the infrastructure's improvement "according to Foxconn Semiconductor Group vice president Brian Ho.

The technical partner is Foxconn. To diversify its interests in the tech industry, Vedanta is providing funding for the project.

The third business to declare ambitions to establish a chip factory in India is Vedanta. A joint venture between ISMC and Singapore-based IGSS Ventures claimed to have secured agreements to erect semiconductor manufacturing facilities there over the following five years.

#businessnews #businessnewstoday #foxconn #vedanta

Read more Business News , Today Politics Headline , Today Finace News Update ,Latest Social News Update , World Highlight , Entertainment Latest News , Today Sports News Update , Latest Education Update , Real Estate Today Update