Vedanta Group expects $3.5 billion in chip sales, one-third from exports

• Joint venture partner Foxconn has all the necessary agreements and technologies in place.
• Vedanta Group aims to invest USD 15 billion in semiconductor industry in the first decade.
• Vedanta bought Avanstrate of Taiwan to enter the display fab manufacturing industry.

A senior official of Vedanta Group stated that the company anticipates its semiconductor division to generate between USD 3 and USD 3.5 billion in revenue, of which roughly USD 1 billion will come from exports. Akarsh Hebbar, worldwide managing director of display and semiconductor business for Vedanta Group, stated that its joint venture partner Foxconn has all the necessary agreements and technologies in place to begin manufacturing electronic chips.

Vedanta Foxconn JV is one of three businesses that have submitted applications to establish semiconductor manufacturing facilities in the country. Vedanta has also submitted an application to establish a display fabrication unit for the production of screens used to display information on electronic gadgets.

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“We expect our turnover to be in the range of USD 3-3.5 billion in the first phase which is by 2026-27. This will be from both display and semiconductor combined. At that time we expect USD 1 billion to come from exports,” said Hebbar

Vedanta Group has budgeted up to USD 20 billion for investments in its semiconductor industry, and it aims to invest USD 15 billion in the first decade.

This is Vedanta Group’s second effort to enter the semiconductor industry. Previously, the corporation had announced plans to enter the industry in 2015-2016 with a USD 10 billion investment to establish a display fabrication factory, but it was unable to obtain government approval.

Later, Vedanta bought Avanstrate of Taiwan to enter the display fab manufacturing industry.

The company has formed a joint venture with the electronics manufacturing giant Foxconn to establish a chip production facility.

“Foxconn is running four foundries themselves. They purchase USD 30-40 billion worth of semiconductors. The reason we don’t see it is because the S group is a very small subsidiary of Foxconn compared to the whole of Foxconn. They are going to bring this ecosystem here. Foxconn is a fully integrated unit that can bring IPs (Intellectual Properties) required to make 28 nanometer technology,” Hebbar said.

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He stated that India’s goal is to produce 1 billion cellphones by 2030, 15 million televisions per year, and 24 million notebooks per year, all for domestic consumption.

“Our target is towards local consumption. We will keep 10 per cent of display for exports and 20-25 per cent in semiconductor for exports. Majorly we will make it for India,” Hebbar said.

The company anticipates beginning production of display units in 2024-25 and chips in 2025-26.

The company will consider developing a 28 nanometer (nm) chipset.