Vedanta clarifies semiconductor manufacturing to be done by holding company Volcan

Vedanta on Thursday issued a clarification stating that the proposed business of manufacturing semiconductors will be undertaken by its ultimate holding company Volcan Investments Limited.

"Further to the clarification issued by the Company on February 16, 2022, we reiterate that the proposed business of manufacturing semiconductors is not under Vedanta Limited and we understand that it will be undertaken by the ultimate holding company of Vedanta Limited, Volcan Investments Limited," stated a press release.

Earlier, Vedanta and Foxconn had said they will invest over Rs 1.54 lakh crore to set up a display fabrication and semiconductor manufacturing facility in Gujarat. The proposed facility will come up over the next two years in Prime Minister Narendra Modi's home state, according to the terms of the deal signed on Tuesday.

The mining giant will hold 60% stake in the joint venture while the Taiwanese chip maker will own the balance 40%. The JV became the fourth to announce plans under the ₹76,000-crore production-linked incentive (PLI) scheme to foster chip-making capabilities in the country.

In a series of tweets announcing the deal, Vedanta chairman Anil Agarwal said the investment "will help make India's #Atmanirbhar Silicon Valley a reality."


ET had on Monday reported that the Vedanta-Foxconn JV would pick Gujarat as the location for its semiconductor and display fabrication units.

Foxconn had said in a statement on Tuesday that the Centre's "active and strong support" boosts confidence in setting up a semiconductor factory, adding that the improving infrastructure in the country adds to the positive sentiment.