Vedanta bullish on semiconductor wafers, display manufacturing, eyes $3-billion turnover

Mining giant Vedanta has projected peak annual revenue potential from its semiconductor wafer and display manufacturing businesses at $3 billion, the Economic Times reported on July 28, citing documents presented at the Semicon West industry conference in the US recently.

Vedanta would target volumes of 240,000 sheets a month for its integrated display fab built at a $12-billion investment, and about 50,000 Wafer Starts Per Month (WSPM) from the semiconductor factory, the report said.

Earlier this year, Vedanta partnered with Foxconn to set up a manufacturing plant of semiconductor chips and displays in India.

The report further noted that Foxconn runs three wafer fabs in the six- and eight-inch category in Taiwan, Japan, and Malaysia. Vedanta’s semiconductor fab would be a 300-millimetre (12-inch) wafer producer.

Vedanta, along with Foxconn, would focus on selling the semiconductor wafers to smartphone manufacturers, and appliance makers.

The Vedanta-Foxconn venture, on July 26, announced an investment of Rs $22 billion (Rs 2.06 lakh crore) for setting up a chip manufacturing plant in Maharashtra.

The state government would approve various sops for the plant, including 25 percent capital subsidy, subsidised water and power supply, and concession in land rate.

The project is expected to come up in Talegaon near Pune and around 1,000 acres will be provided in phases. The facility is expected to generate more than 200,000 direct and indirect jobs.