Indian company Vedanta has announced a joint venture with Taiwanese company Foxconn, which is recognized as the semiconductor capital of the world. Under this, a semiconductor plant will be set up in Gujarat. It is being said that with this India will be able to meet the needs of semiconductors and will also be in a position to export to other countries. This deal of India is not only beneficial for it, but it is also going to increase the concern of a rival like China. An investment of Rs 1.54 lakh crore will be made on this project to be built near Ahmedabad. Vedanta will hold 60 per cent in the joint venture, while the Taiwanese company will hold 40 per cent.
It has been said in a report that if some concessions are given by India to industries, then the import of electronic goods will come down by 40 percent. Major part of electronics goods in India are imported from China. In such a situation, it will be a big setback for Dragon as India will be able to become self-reliant in the manufacturing of semiconductors and electronics goods. But India will have to show some leniency for this. Semiconductor business experts say that the way semiconductor giants have opened their treasury to give incentives to big chip maker companies, the game will be more difficult for a new player like India.
Why the importance of semiconductors in the world, China and America are also worried
The importance of semiconductors can be understood from the fact that even after being stronger than Taiwan in military and economic force, China does not take the risk of attack on it. The reason for this is that Taiwan is the semiconductor capital in the world and the attack will affect Chinese tech companies. Today, semiconductors are used in all electronics items including mobiles, cars, TVs, radios. It can be understood from this that if it starts being produced in India itself, then what will be its strength in the tech sector.
Why will India’s self-reliance be a concern for China?
So far, China is at number one in this matter. The share of chip exports in China’s economy shows how ‘Dragon’ has filled its wealth by selling silicon chips to all the countries of the world including America. China and India are the two largest populated countries in the world. India’s own consumption is very high and for this it is dependent on imports, which is directly benefited by China. In such a situation, if India’s self-reliance will give it strength, it will also hurt China’s business.
Anil Agarwal said – Silicon Valley has come a little closer
We can also understand this from the tweet of Anil Agarwal, head of Vedanta Group. Regarding this deal, he tweeted, ‘India’s own Silicon Valley is now one step closer. India will not only now be able to meet the digital needs of its people but will also be able to send it to other countries. The journey from chip sourcing to chip making has now officially begun. In another tweet, Anil Agarwal writes, ‘History has been made. Glad to announce that Vedanta and Foxconn’s Semiconductor Plant will be set up in Gujarat. An investment of Rs 1.54 lakh lakh crore will be made by Vedanta. This will fulfill India’s dream of becoming a self-reliant Silicon Valley.
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