Vedanta Ltd Diversifies Operations with Inclusion of Semiconductor and Display Glass Manufacturing Units
Vedanta Ltd recently made an announcement regarding its acquisition of the semiconductor and display businesses of Twin Star Technologies Ltd, a sister concern company. This move will position Vedanta as the first integrated semiconductor and display fab business in India. Twin Star Technologies is a wholly-owned subsidiary of Volcan Investments Ltd, the ultimate holding company of Vedanta.
The acquisition will be carried out through a share transfer of Twin Star Technologies Limited’s Semiconductor and Display Special Purpose Vehicles (SPVs) at face value. Vedanta stated that this strategic restructuring will add semiconductor and display glass manufacturing ventures to its diversified portfolio.
Anil Agarwal, the Chairman of Vedanta, expressed the company’s commitment to making India self-reliant in electronics. He envisions creating a Silicon Valley in India, fostering a cutting-edge electronics ecosystem. Agarwal’s goal is to provide every Indian youth with affordable smartphones, laptops, and electric vehicles.
Vedanta emphasized that semiconductor and display glass manufacturing represent significant growth opportunities for India. The semiconductor market was valued at $24 billion in 2022 and is projected to reach $80 billion by 2026. Likewise, the display panel market is estimated to be worth $7 billion and expected to grow to $15 billion by 2025. Currently, India relies entirely on imports to fulfill these requirements.
Akarsh Hebbar, Vedanta’s semiconductor and display business Global Managing Director, believes that semiconductors and display fabs are fundamental to establishing a robust electronics ecosystem. This development is expected to generate multiple opportunities in both downstream and upstream industries, leading to job creation and acting as a multiplier for the country’s GDP.
Vedanta aims to manufacture semiconductors and display glass in India, enabling the production of affordable electronics such as smartphones, laptops, televisions, and electric vehicles for the Indian market. The company had previously announced its plans to establish a plant with an investment of approximately Rs 1.5 lakh crore, anticipating revenue generation by 2027.
David Reed, Vedanta’s Semiconductor Business CEO, expressed his belief that India has the potential to become the next semiconductor hub globally, with all the necessary ingredients for success. Vedanta already operates in the LCD glass substrate business through its subsidiary, Avanstrate Inc.
Y J Chen, the CEO of Vedanta’s Display Business, sees this as India’s opportunity to become the fifth country in the world to manufacture display glass. He predicts a significant impact on consumer affordability of devices once domestic production is established.
In summary, Vedanta’s acquisition of Twin Star Technologies’ semiconductor and display businesses marks a significant step toward establishing an integrated semiconductor and display fab business in India. The company aims to make India self-reliant in electronics, create job opportunities, and contribute to the country’s GDP by fostering a robust electronics ecosystem.
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