India Wins $20B Semiconductor Tech Investment From Apple Supplier, Vedanta

According to Reuters, Foxconn, a supplier to Apple Inc (NASDAQ: AAPL), plans to invest $19.5 billion to build semiconductor and display manufacturing facilities in Gujarat, India.

Anil Agarwal, the chair of Vedanta, tweeted about the new plant and referred to it as the beginning of India's transition from a chip consumer to a chip manufacturer. 

In order to build units close to Ahmedabad, the largest city in the western state, the joint venture sought incentives.

The $1.54 trillion showcase project is timed to the state's forthcoming municipal elections, where Modi's ruling coalition is up against stiff opposition. Within two years, the Vedanta venture wants to produce chips and displays.

Vedanta aims to invest $11.9 billion in a display manufacturing facility and another $7.58 billion in separate chip-related production facilities. Vedanta and Foxconn will collaborate closely with the state government to create high-tech clusters with the necessary infrastructure.

According to TechCrunch, Vedanta, which has a mining experience, would finance the project while Foxconn will contribute technological skills to it. The project will receive capital expense and electricity subsidies from the state of Gujarat.

The Indian government pledged to provide incentives for firms investing in chip manufacturing beyond an initial $10 billion plan. Image from Wikimedia Commons

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