Vedanta-Foxconn to Set Up Semiconductor Facility in Dholera SIR
Vedanta-Foxconn joint venture will be setting up its semiconductor facility in Dholera Special Investment Region (SIR). This information was shared by a Gujarat government official on 20th February 2023.
Semiconductor Project in Advanced Stages of Evaluation
Talking about Vedanta-Foxconn’s upcoming project, the aforementioned Gujarat state official said, “After a detailed site analysis in consultation with Gujarat government authorities, the joint venture entity of Vedanta and Foxconn has selected Dholera SIR for setting up their semiconductor and display manufacturing facility”.
Dholera SIR is situated about 100 Km from Ahmedabad and is a greenfield smart city.
He further added that this semiconductor project is in advanced stages of evaluation by the Union Government.
Semiconductor Facility to Come up with Rs. 1.54 Lakh Cr. Investment
Vedanta-Foxconn JV’s semiconductor project comprises a semiconductor fabrication unit, a display fabrication unit, and a semiconductor testing and assembly unit.
Vedanta had signed two Memoranda of Understanding (MoUs) with the Gujarat government in September 2022 for setting up its semiconductor facility in Ahmedabad district with a total investment of Rs. 1.54 lakh crore. At the time of signing these MoUs the exact location of the upcoming facility was not specified.
Gujarat’s Semiconductor Policy to Ease Establishment of the Facility
Gujarat’s semiconductor policy 2022-27, which was introduced in July 2022, bodes well for Vedanta-Foxconn’s upcoming facility, as it offers incentives for setting up semiconductor and display fabrication plants in the state.
These incentives include financial assistance from the Gujarat government in addition to the Union Government’s CAPEX assistance. Procurement of land at subsidised rates and a one-time reimbursement of 100% stamp duty and land registration fees for setting up semiconductor fabrication units is offered by this policy.
Moreover, subsidised water and electricity supply will be provided to upcoming fabrication plants in the state in addition to expedited clearances and grants of approvals.
Earlier in April 2022, when the specifics of this project were still to be charted, Vedanta had asked state governments for water and electricity supply subsidies, since semiconductor facilities use these resources heavily.