Anil Agarwal-led conglomerate Vedanta Ltd will take over the semiconductor and display glass businesses ventures which were thus far held by a unit of its holding company, the group said on Friday.
The decision comes after capital market regulator Securities and Exchange Board of India (SEBI) imposed a penalty of Rs 30 lakh on metals-to-oil conglomerate Vedanta Ltd for violating the market regulator's disclosure requirements.
SEBI said Vedanta had broken its rules by publishing a press release on its website that made it appear it had partnered with Foxconn to make semiconductors in India, when the deal was with Vedanta's holding company.
Twin Star Technologies is a wholly-owned subsidiary of Volcan which is the ultimate holding company of Vedanta.
Volcan Investments Ltd and Foxconn signed a pact last year to invest $19.5 billion to set up semiconductor and display production plants in the state of Gujarat.
The acquisition by Vedanta will be effected by way of a share transfer at face value of Twin Star Technologies Limited’s Semiconductor and Display SPVs.
With this restructuring, Vedanta Limited announced the addition of semiconductors and display glass manufacturing ventures to its diversified portfolio.
Speaking on the development, David Reed, CEO of Vedanta’s Semiconductor Business, said he has a notion that India could become a global semiconductor hub.
Anil Agarwal, Chairman of Vedanta, stated that this endeavour is the first step towards developing a cutting-edge and advanced electronics ecosystem comparable to Silicon Valley.
“Vedanta is committed to making India self-reliant in electronics. This is the beginning of the creation of a Silicon Valley in India, a cutting edge and world class electronics ecosystem. My dream is for every Indian youth to have an affordable smartphone, laptop and an electric vehicle," Agarwal said.
Akarsh Hebbar, Global MD, Vedanta’s Semiconductor and Display Business, said the semiconductors and display fab businesses have the potential to create jobs and serve as a multiplier for the GDP.
The semiconductor market, according to a statement from Vedanta, was worth $24 billion in 2022 and is expected to grow to $80 billion by 2026. And, the display panel market, which is now estimated to be worth $7 billion, is expected to grow to $15 billion by 2025.
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