India needs not just one but several fabs, says Akarsh Hebbar of Vedanta Semiconductors

Bullish about making India a semiconductor and display manufacturing nation, Akarsh K. Hebbar, Global Managing Director of Vedanta’s semiconductor and display business told Business Today that India needs not just one but several fabs (semiconductor manufacturing factories). Back in early 2022, the Anil Agarwal-led Vedanta group, in a joint venture with Taiwan’s Foxconn, had applied for the governments PLI scheme for making India a semiconductor manufacturing nation.

15 months since the first round of applications closed, Vedanta along with two other applicants (IGSS and ISMC), is still awaiting the outcome for its application. As per the news available, the government is planning to open the second round of applications for inviting applications under the scheme.

To which Hebbar said, “Localisation of supply chain ecosystem will be successful only when there is more than one fab in the country. We welcome more participation in the Government of India's excellent policy regime while we await the outcome of our own application which is under process.”

Ahead of opening the second round of applications, IT Minister Ashwini Vaishnaw is on a three-day visit to the US where he is meeting major semiconductor players. He interacted with Google CEO Sundar Pichai on the first day. He visited Applied Materials headquarters and also interacted with the leadership of Intel on day 2 of his visit.

Industry veterans believe Minister Vaishnaw’s visit and interaction with chip players might help India secure some additional investments once the scheme reopens. While there might not be commitments for setting up fabs to start with, even Assembly, Testing and Packaging (ATMP) or agreements for technology transfer can be considered as a good start.

Sources closer to the ministry told Business Today that the government has learnt from the past and does not intend to cap it at 45 days to submit application. It intends to keep it open-ended, allowing interesting companies to apply as and when they are ready.

Also read: Vedanta-Foxconn JV locks in high-volume technology partner for semiconductor manufacturing

Also read: How Vedanta’s weak semiconductor proposal has emerged as a promising one