In 2017, Akarsh Hebbar, son-in-law of metal and mining magnate Anil Agarwal, was persuaded by his father-in-law to join the family business, Vedanta Resources. Hebbar had previously studied at the London School of Business and worked at McKinsey. His interest in technology led him to recommend Vedanta acquire AvanStrate Inc, a Japanese manufacturer of LCD glass substrates, which was struggling financially. Vedanta bought the company for $158 million, and Hebbar was asked to lead it. This move proved to be crucial for Vedanta's plans to build India's first semiconductor and glass display manufacturing facility. Vedanta has established two subsidiaries, Vedanta Foxconn Semiconductors Limited (VFSL) and Vedanta Displays Limited (VDL), and has tied up with Taiwanese company Hon Hai Precision Industry (Foxconn) for its semiconductor business. Vedanta is now waiting for the Indian government to approve its applications for the project. The entire project is estimated to cost Rs1.54 lakh crore, with the central government providing a 50 percent subsidy to both projects, as part of its $10 billion Indian Semiconductor Mission package to promote semiconductor manufacturing in India.
The semiconductor business of Vedanta, despite the company's expertise in glass display, has become a focus of attention due to the ongoing global semiconductor shortage. In India, the consumption of semiconductors has doubled between 2016 and 2020, and is expected to double again by 2030, reaching $80-100 billion. Semiconductors are critical components in consumer electronics, vehicles, and other devices, with 40 nm and 28 nm chips accounting for over 66 percent of global demand. Vedanta aims to manufacture 40 nm chips and eventually move to 28 nm chips. The joint venture with Foxconn, signed MoUs with companies in Japan and South Korea, and aims to tap into the massive captive demand of India's electronics imports, which are worth $300 billion. Vedanta's focus on display panels will also allow manufacturers to build their devices in the country, giving a boost to medium- and small-scale enterprises. The project is partially funded by the government and state governments, and Vedanta's strengths in raising funds and its credibility make it possible for the company to complete the project.
