A top corporate executive told Reuters on Saturday that India’s Vedanta is in negotiations with banks to obtain $2.5-$3 billion in debt to fund its semiconductor and display production plans as it strives to become the country’s first chipmaker.
In February, the oil-to-metals giant decided to move into chip production, forming a joint venture with Taiwan’s Foxconn. It has a total investment budget of $20 billion.
Vedanta is pursuing incentives from Prime Minister Narendra Modi’s federal government, as well as discussions with numerous Indian states. After receiving subsidies and finalising its agreements, the corporation intends to raise $2.5 to $3 billion in bank debt.
We have banking links all throughout India. We are in discussions with them, according to Akarsh Hebbar, Vedanta’s Global Managing Director of Display and Semiconductor Business.
As part of its entry into semiconductors and displays, Vedanta is seeking incentives from state governments such as 1,000 acres (405 hectares) of free land and cheaper water and power, according to Reuters exclusively on Thursday.
During an interview on the sidelines of India’s inaugural semiconductor conference, which is being hosted in Bengaluru’s tech capital, Hebbar stated that the business expects a 10-15% return on investment over 15-20 years.
On Friday, Modi and his IT ministers revealed plans for more investment incentives, telling a conference that they intended India to become a prominent participant in the global semiconductor business, which is now controlled by Taiwan and a few other nations.