India: Vedanta, Foxconn to invest $19.5 billion in Gujarat chip project

Vedanta Ltd and Taiwan's Foxconn will invest $19.5 billion (1.54 trillion rupees) under a pact signed on Tuesday to set up a semiconductor project in Gujarat, Indian Prime Minister Narendra Modi's home state.

Reuters was first to report on Monday that the joint venture obtained subsidies — including on-capital expenditure and electricity — from Gujarat.

They plan to build separate units for semiconductor and display production near the western state's largest city, Ahmedabad.

Gujarat Chief Minister Bhupendrabhai Patel said the venture would create more than 100,000 jobs, and the state was prepared to extend any support to the project, which it won in a close race with India's richest state, Maharashtra.

Foxconn is acting as the technical partner, while oil-to-metals conglomerate Vedanta is financing the project, as it looks to diversify into chip manufacturing.

Foxconn said in a statement that the state's infrastructure and the government's active support "increases confidence in setting up a semiconductor factory".