Vedanta to Begin Construction of ₹1.5 Lakh Crore Semiconductor Plant by Late 2023
Vedanta Group is gearing up to break ground on its ambitious ₹1.5 lakh crore semiconductor manufacturing facility between October and December 2023, with plans to roll out its first batch of electronic chips by early 2027.
In a joint statement, Akarsh Hebbar, Global Managing Director of Vedanta Semiconductor and Display Business, and David Reed, CEO of Vedanta-Foxconn Semiconductors Ltd., confirmed that all technology partnerships have been submitted to the government. Banks have expressed readiness to fund 70% of the project cost, with Vedanta contributing the remaining 30%, factoring in the Centre’s 50% subsidy.
The plant, to be established at the Dholera Special Investment Region (DSIR) near Ahmedabad, will initially produce 5,000 semiconductor wafers per month in early 2027, gradually scaling up to 40,000 wafers. Both 28nm and 40nm wafers will be manufactured, serving industries such as ICT devices, automobiles, and smartphones.
Alongside the fabrication unit, Vedanta will set up an OSAT (Outsourced Semiconductor Assembly and Test) facility to make the wafers ready for use by electronics and automotive companies. This initiative aims to produce 60% of components for every electronic device domestically, propelling India toward true self-reliance in electronics manufacturing.
Hebbar highlighted the potential ripple effect: the project is expected to attract over 150 global suppliers from the US, Japan, Korea, and Taiwan, foster thousands of MSMEs, and transform India into a global semiconductor hub — a ‘Silicon Valley’ of the East.
“This ecosystem could deliver GDP multipliers of 21–23 times,” Hebbar noted. “It has the power to accelerate India’s transition from a developing to a developed nation.”
