London-based Vedanta Group has restructured its semiconductor and display glass businesses, formerly under Twin Star Technologies (TSTL), and transferred them to its Indian entity, Vedanta Limited. As a result, Vedanta Limited, a subsidiary of Vedanta Resources, will now house these businesses. TSTL is a wholly-owned subsidiary of Volcan Investments, the holding company of Vedanta Limited. Vedanta Limited is acquiring the entire stake in Vedanta Foxconn Semiconductors and Vedanta Displays from TSTL at their face value, as approved by its board. This restructuring will expand Vedanta Limited’s portfolio to include semiconductor and display glass manufacturing ventures. Read More Business News on our website.
Vedanta Chairman Anil Agarwal expressed the company’s commitment to fostering self-reliance in electronics in India, aiming to create a cutting-edge electronics ecosystem akin to Silicon Valley. The company envisions every Indian youth having access to affordable smartphones, laptops, and electric vehicles (EVs). Earlier reports mentioned that Foxconn, a Taiwanese contract manufacturing firm, was seeking new partners for its semiconductor business in India due to obstacles faced in its joint venture with Vedanta Group.
Vedanta Limited believes that its twin ventures will contribute to the Indian government’s goal of achieving self-reliance in electronics. David Reed, CEO of Vedanta’s Semiconductor Business, expressed optimism in India becoming the next semiconductor hub, citing the country’s potential for success. The company already has a presence in the liquid-crystal display (LCD) glass substrate business through its subsidiary Avanstrate. It had also signed a Memorandum of Understanding with the Gujarat government in September 2022 to establish semiconductor and display fabs in the state.
Leveraging its expertise in large-scale manufacturing and operational excellence, Vedanta Limited aims to partner with leading global companies to drive its semiconductor and display glass businesses. The production of domestically made semiconductors and display glass is expected to facilitate affordable electronics such as smartphones, laptops, televisions, and electric vehicles for the Indian market. The Indian semiconductor market was valued at $24 billion in 2022 and is projected to reach $80 billion by 2026. Similarly, the display panel market is estimated to grow from $7 billion to $15 billion by 2025.
The global semiconductor industry is currently experiencing significant developments, and India is well-positioned to capitalize on the diversification of critical supply chains in semiconductors and display fabs. By approving these acquisitions, Vedanta’s board believes that Vedanta, its shareholders, and India’s economy can benefit from the substantial opportunities presented by these shifting global dynamics.