Vedanta to Take Over Foxconn Chip Joint Venture From Twin Star Technologies
Anil Agarwal-led Vedanta Group will acquire 100 percent stake in semiconductor and display units from sister concern Twin Star Technologies, the conglomerate said on Friday. Twin Star Technologies is a wholly-owned subsidiary of Volcan Investments Limited which is the ultimate holding company of Vedanta Limited.
The new structure will make Vedanta India's first company in Integrated Semiconductor and Display Fab Business.
"The Board of Directors at their meeting held today, July 7, 2023, have considered and approved the acquisition of 100 per cent of Vedanta Foxconn Semiconductors Private Limited (VFSPL) and Vedanta Displays Limited (VDL), wholly owned subsidiaries of Twin Star Technologies Limited (TSTL) via share transfer at face value," Vedanta said in a regulatory filing.
The transaction is expected to close during the ongoing quarter.
With this restructuring, Vedanta Limited announced the addition of semiconductors and display glass manufacturing ventures to its diversified portfolio.
"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," Vedanta Chairman Anil Agarwal said in a statement.
Vedanta said that semiconductor and display glass manufacturing represents a large growth opportunity for India.
It said that the semiconductor market stood at $24 billion (nearly Rs. 1,98,270 crore) in 2022 and is estimated to reach $80 billion (nearly Rs. 6,60,900 crore) by 2026.
The display panel market is estimated to be worth $7 billion (nearly Rs. 57,800 crore) and is expected to grow to $15 billion (nearly Rs. 1,23,900 crore) by 2025. Currently, India imports 100 percent of these requirements, the statement said.
"We believe that semiconductors and display fab are at the core of any electronics ecosystem. This will also spawn the creation of multiple ancillary industries and opportunities in both downstream and upstream, creating jobs and will be a GDP multiplier," Vedanta's semiconductor and display business global MD Akarsh Hebbar said.
The company said that made-in-India semiconductors and display glass will facilitate affordable electronics — smartphones, laptops, televisions, and electric vehicles — for all Indians.
The company had earlier announced that the plant will be set up with an investment of around Rs. 1.5 lakh crore and start making revenue by 2027.
"I believe that India can become the next semiconductor hub for the world. It has all the ingredients for success," Vedanta's Semiconductor Business CEO David Reed said.
Vedanta has its presence in the LCD glass substrate business through its subsidiary Avanstrate.
"This is India's time to become only the 5th country in the world to manufacture display glass. The impact on consumers in terms of affordability of devices will be huge," Display Business CEO Y J Chen said.
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