September 25, 2022

What does Vedanta’s semiconductor plant mean for India?

The company said Vedanta will have a 60 per cent stake in the joint venture set up with an investment of Rs 1,54,000 crore. Foxconn will hold a 40 percent stake in the manufacturing facility.


Vedanta and apple The supplier company Foxconn (Foxconn, Gujarat my new Semiconductor manufacturing plant will install In a statement issued on Tuesday, the company said Vedanta has signed two memorandums of understanding (MoU) with the Gujarat government to set up a semiconductor fabrication unit, a display fabrication unit and a semiconductor assembling and testing unit in the state’s Ahmedabad district.

The company said that a joint venture has been set up with an investment of Rs 1,54,000 crore, Vedanta Shareholding will be 60 percent. In this manufacturing facility Foxconn will have 40 percent stake.

Why is it important?

For electronic equipment Semiconductor an essential part. It is used to make everything from simple electronic items to sophisticated digital devices and weapons. These chips are also used in the auto industry. However, in recent times the prices of semiconductors have increased due to increased demand and decreased supply. Global supply chain disruptions and lockdowns due to COVID-19 have affected semiconductor device manufacturing around the world, including Taiwan, which accounts for more than 90 percent of global production of these chips.

Taiwan is under threat of attack from China, which has expressed concern about future supplies of these advanced semiconductors. Most countries are looking for alternative manufacturing facilities for semiconductors.

Gartner stated this in its February 2022 report Semiconductor chips Semiconductors such as microcontroller units, commonly used logic integrated circuits (ICs) and a variety of specialized applications are expected to increase average selling prices (ASPs) by 15 percent or more in 2021. Due to the shortage of semiconductors, original equipment manufacturers like Apple and Samsung have started double booking and panic buying, causing their semiconductor costs and prices to increase drastically.

Semiconductors are key to Digital India

India smart phone and plans to establish itself as a manufacturing hub for other electronic components In such a scenario, having a semiconductor manufacturing facility would give the country a strategic edge, protect the interests of local companies, while also developing the technological know-how to establish itself as a manufacturing hub for advanced semiconductors in the future. Government of India According to the WHO, semiconductor consumption in the country is expected to reach $80 billion by 2026 and $110 billion by 2030.

Meanwhile, semiconductor shortages have affected vehicle production in India, driving up prices of gadgets and other electronic components. The Vedanta-Foxconn unit is a step towards promoting local manufacturing of semiconductors. The proposed Vedanta-Foxconn semiconductor manufacturing fab unit will operate on 40nm and 28nm technology nodes to be used as the standard format for common electronic items instead of higher nodes.

Although chip production has already advanced to 3 nm and 2 nm nodes, even budget smartphones have processors with nodes as small as 8 nm. In such a scenario, chips based on the 28 nm node will play an important role in developing local capabilities in 5G, Internet of Things (IoT), clean energy technologies as well as other home appliances. ,Hasan M. Kamal,

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