Vedanta Share Price Jumps 3.5 % After Semiconductor Deal
Vedanta share price jumped 3.5%, even in the low market as Vedanta signed MoU with a Taiwanese company to set up India’s first semiconductor plant in Gujarat.
India’s first semiconductor plant: Vedanta signed a deal (MoU) with a Taiwanese electronics manufacturing company Foxconn to establish India’s first semiconductor plant in Gujarat, which caused its share price to increase by more than 3.5 percent in a down market.
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In early trade on the BSE, Vedanta’s share price increased 3.5% to Rs 287.25 in response to the news.
According to news sources, Vedanta with Taiwanese electronics manufacturing company Foxconn would reportedly make one of the largest investments ever of ₹ 1.54 lakh crore to build India’s first semiconductor plant in Gujarat state.
On a 1000-acre plot of land in the Ahmedabad area, the 60:40 joint venture between Vedanta and Foxconn will build a semiconductor fabrication unit, a display fabrication unit, and a semiconductor assembling plus testing unit.
Following the Tuesday Memorandum of Understanding (MoU) signing with the Gujarat government, Vedanta Chairman Anil Agarwal said that the project would begin production in two years.
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Automobiles, mobile phones, ATM cards, and other digital consumer goods all depend on semiconductor chips, sometimes known as microchips.
The market for semiconductors in India was estimated at USD 27.2 billion in 2021, and it is anticipated that it will increase at a brisk CAGR of around 19% to reach $64 billion in 2026. But up until now, none of these chips had been produced in India.
Electronics and the automobile sectors were among those last year that were significantly impacted by a severe shortfall in the semiconductor supply chain.
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