Gujarat's explosive arrival in the hi-tech business of semiconductors

- Vedanta - Focuscom will manufacture semiconductors in Gujarat with an investment of Rs.1.54 lakh crore, it is estimated that Rs.2 lakh crore worth of semiconductors will be made in Gujarat in five years.

- 'Rise of India's new Silicon Valley, now Indian tech professionals from abroad will return': Anil Aggarwal

A semiconductor is a chip that can perform a specific function by passing electricity or data. China, Taiwan, South Korea, Japan and Israel are at the forefront of semiconductor production in the world. American companies, the world's economic superpower, produce it, but less in their own country and more abroad. In the digital era, India is now entering the world of semiconductors, which are required for computers, mobile phones, television sets or any electrical equipment in which a circuit works precisely according to a customer's order. The most proud thing is that this project in India is coming to our Gujarat.

This week, the Vedanta group company, a producer of crude oil, aluminum, copper, gold, iron ore, and a leading Taiwanese company, Foxcom, signed an MoU with the Gujarat government for a semiconductor and display screen project with an investment of Rs 1.54 lakh crore in Gujarat.

During the Corona period, when the world was closed due to lockdown, digital tools kept people, society, financial transactions, education and health services alive. As the digital format is becoming more widespread, the demand for semiconductors has increased manifold. There is such a huge shortage that there are orders for automobiles, capital goods, the company has received money on bookings but due to lack of these chips the delivery is delayed. So the importance of this chip being made in India increases.

Secondly, India currently needs 35 (Rs. 2.78,000) billion dollars. In five years the requirement will be 100 billion dollars (Rs. 8 lakh crore). If a part of India's total imports will now be made in India, the country's economy will benefit greatly.

Anil Agarwal, Chairman of Vedanta Group, who was in Gandhinagar at the time of this agreement, said, 'Like Silicon Valley in America, the days of Silicon Valley in India are not far away. I expect that with the Rs 1.54 lakh crore project we announced today with Foxcom, the world's technology professionals and innovators will return to India.'

The project is likely to come up near Ahmedabad

"We want the project to be near Ahmedabad. The Gujarat government has put forward the Dholera Special Economic Zone in its policy for such projects. For our project we need university students, startups, entrepreneurs and skilled manpower. Water, 400 acres of land and electricity are also important requirements for the project. For this we want the project to be within 30 km of Ahmedabad or its surroundings. In the next 15-20 days, Foxcom and its team will finalize the location for the project,' said Anil Agarwal.

In the first phase, the company will start one plant for semiconductors and another for display wafers. It is estimated that 10 billion dollars i.e. Rs.80,000 crore will be invested in the first phase. We will start the plant with 28-nanometer chips and 12-inch displays required for mobiles, laptops, automobiles or other integrated circuits. The entire plant will build on Foxcom's Taiwanese experience. The design, machinery and operation of the plant will all be replicas of other Focuscom plants. Focuscom will also be responsible for gradually training the local people here and taking them into plant operation,' said Agarwal.

He further added that the project will be the fastest in the world as it is a replica of the Taiwan plant. "It took Foxcom itself 10 years to produce its first product. But we will work with its copy in the first phase, so production will start in the next 24 months in this project, which will be the fastest," said Agarwal.

25 percent subsidy, electricity at Rs.3, 400 acres of land

According to its policy announced in July, the Gujarat government is ready to give subsidy of 25 percent of the total investment to the Vedanta-Focuscom project for the semiconductor project. For this project, we have demanded 400 acres of land and electricity at a maximum price of Rs.3 per unit. Apart from this, the arrangements for the water requirement for the project will also have to be made by the state government on a professional basis,' said Anil Agarwal. The Gujarat government's policy is to provide water at a price of Rs.12 per cubic meter for five years.