India’s first semiconductor production plant

India’s first semiconductor production plant

The biggest ever corporate investment of Rs.1.54 lakh crore in the history of independent India has been made. Multinational mining company Vedanta Limited and Taiwanese electronics manufacturing giant Foxconn has announced recently to invest Rs 1.54 lakh crore for setting up India’s first semiconductor production plant in Gujarat.

Details of MoU:

  • The two companies (Vedanta and Foxconn) signed a memorandum of understanding with the Gujarat government to set up the India’s first semiconductor production plant in the state.
  • The MoU has been signed in the presence of Minister for Railways, Communications, Electronics & Information Technology, Ashwini Vaishnaw, at a function held in Gandhinagar.
  • We examine why this new plant is a reason to celebrate and how it will help the nation.


The first semiconductor plant of India:

  • India’s first semiconductor production plant will be set up in Gujarat by Vedanta and Foxconn after doing an investment of Rs. 1.54 lakh crore.
  • From an investment of Rs. 1.54 lakh crore it would be set up semiconductor plnt, a display fab unit, and a semiconductor assembling and testing unit.
  • Out of the total investment of Rs 1.54 lakh crore, Rs 94,000 crore will go into setting up the display manufacturing unit while Rs 60,000 crore will be invested for the semiconductor manufacturing facility.
  • As per the early information the plants will be set up on a 1, 000-acre land in Ahmedabad.


What are semiconductor chips?

  • Semiconductor is the prominent component that powers electronic items that exist in our surroundings.
  • Generally it is made of silicon which the electricity can be controlled using semiconductor chips in various electronic items like our cars, laptops, smart phones, refrigerators etc.
  • These chips work as a primary part in the functioning of all modern electronics and information and communications technology products.
  • Eight per cent of all the chips which are using in the world are produced in Taiwan, followed by China and Japan.
  • As of now, semiconductor chips are not produced in India at present but this would be history.

Signing of MoU:

Both the companies has signed an MoU to set up the plant with Government of Gujarat.

Gujarat Science and Technology Department Secretary Vijay Nehra has signed the deal from government side and said that it is the biggest ever corporate investment in the history of independent India.

Question & Answer:

Q1. In which state the India’s first semiconductor manufacturing plant will be set up in future?

Ans. Gujarat

Q2. Which two companies has signed MoU with Government of Gujarat to set up semiconductor manufacturing plant?

Ans. Vedanta (Indian multinational company) and Foxconn

Q3. How much lakh crore of investment will be made to set up India’s 1st semiconductor manufacturing plant in Gujarat?

Ans. Rs. 1.54 lakh crore

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