Gandhinagar: Gujarat government signed MoU with Vedanta and Foxconn Group. This MoU, which will lead to an investment of Rs 1.54 lakh crore in Gujarat, is in line with Prime Minister Narendra Modi’s vision of achieving a self-reliant India and self-reliance in the field of semiconductor manufacturing. The MoU was signed in the presence of Gujarat Chief Minister Bhupendra Patel and Union Electronics and Information Technology Minister Ashwini Vaishnav. Jitubhai Vaghani, Minister of Education, Science and Technology, Government of Gujarat was also present on the occasion. Vedanta Display Ltd. will set up a display fab unit in Gujarat with an investment of Rs 94,500 crore and Vedanta Semiconductors Ltd. will set up an integrated semiconductor fab unit and OSAT (Outsourced Semiconductor Assembly and Test) facility in Gujarat with an investment of Rs 60,000 crore. Thus, these two MoUs together will bring an investment of more than Rs 1.54 lakh crore to Gujarat and create around 1 lakh new employment opportunities in the state.
The investment proposed by Vedanta and Foxconn Group for setting up India’s first Display Manufacturing Fab Unit and an Integrated Semiconductor Fab Unit with an OSAT facility will support the development of upstream and downstream electronics manufacturing clusters and the establishment of healthy trade linkages. Vedanta and Foxconn Group will work closely with the state government to set up high-tech clusters with necessary infrastructures, such as land, semiconductor great water, high-quality power, logistics, and a skilled ecosystem. Apart from making India a global partner in the supply chain, the semiconductor fab unit will prove to be a game changer for the economy. This will create significant employment opportunities for the youth and generate revenue for the state. The proposed semiconductor manufacturing fab unit will operate on 28nm technology nodes with a wafer size of 300mm; And the display manufacturing unit will produce Generation 8 displays for small, medium, and large applications.
Gujarat Chief Minister Bhupendra Patel welcomed this big investment by Vedanta and Foxconn Group in the state. He said that this huge investment coming on the day of completion of 1 year of his government is a testimony to the policy stability and policy support of Gujarat, with good governance and availability of excellent infrastructure facilities in Gujarat. The Chief Minister assured all necessary assistance from the government and said that Vedanta and Foxconn Group would be welcomed in Gujarat not with red tape, but by laying red carpets. Union Minister of Electronics and Information Technology Ashwini Vaishnav highlighted the importance of this investment as part of the Prime Minister’s vision to achieve self-reliance in the field of semiconductor manufacturing. He said that this is the right step toward building a trillion-dollar digital national economy for Gujarat.
Gujarat’s Education, Science and Technology Minister Jitubhai Vaghani said that the project will create massive employment opportunities for the youth of Gujarat and India, as well as contribute to the economy and national security. During the MoU exchange ceremony, Bren Ho of Foxconn Company said that the decision to select Gujarat for the potential semiconductor and display fab units has been taken after an analysis of multiple factors by regional experts and a comprehensive analysis of potential project sites in India and across the world.
Vedanta Group Chairman Anil Agarwal said that Gujarat has a long history of investor-friendly environment and a strong manufacturing base. Additionally, the semiconductor policy recently announced by the state along with excellent incentives in capital expenditure, land, water, and electricity have made Gujarat a very attractive option for his company. It is PM Modi’s vision to establish India as a global manufacturing hub and a major player in the semiconductor supply chain. Under his visionary leadership, the Government of India has taken several important initiatives to reduce dependence on imports of electronic goods including the promotion of domestic manufacturing of electronics, semiconductor products, and components.
To establish India as a global hub of electronics system design and manufacturing, the central government has notified four schemes for the development of a sustainable semiconductor and display ecosystem, OSAT/ATMP, in the country with a cost of Rs 76,000 crore. The India Semiconductor Mission (ISM) has been set up under the Ministry of Electronics and Information Technology for this strategic sector having an impact on national security and economic sovereignty. Gujarat is known to have a policy-driven approach to developing a conducive business ecosystem. In line with the above initiatives of the Government of India, the Government of Gujarat has recently announced the Semiconductor Policy 2022-27 to attract investments in the semiconductor chip manufacturing sector. With the announcement of this policy, Gujarat has become the first and only state to announce a dedicated policy to support the semiconductor and display manufacturing sector. The semiconductor policy provides financial and non-financial incentives for investors besides promoting ease of doing business in the state.
The Government of Gujarat has set up a dedicated office of the Gujarat State Electronics Mission under the Department of Science and Technology, which will act as a single point of contact for all necessary statutory and regulatory approvals in a prompt, proactive and transparent manner. This mission will encourage home electronics manufacturing in the state to create a vibrant manufacturing ecosystem.
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