Vedanta Ltd and Taiwan's Foxconn signed an agreement on Tuesday with Gujarat, Prime Minister Narendra Modi's home state, to set up a $20 billion semiconductor project.
Reuters was first to report on Monday that the joint venture obtained subsidies including on capital expenditure and electricity from Gujarat. They plan to build a chip and display facilities near Ahmedabad.
Gujarat Chief Minister Bhupendrabhai Patel said the venture would create more than 1 lakh jobs, and the state was prepared to extend any support to the project, which it won in a close race with India's richest state, Maharashtra.
Foxconn is acting as the technical partner, while oil-to-metals conglomerate Vedanta is financing the project as it looks to diversify into chip manufacturing.
The Indian government has said it will 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 is the third company to announce a chip plant location in India after international consortium ISMC and Singapore-based IGSS Ventures, which are setting up in the southern states Karnataka and Tamil Nadu, respectively.
Published 13 September 2022, 07:03 IST