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SOUTHERN AFRICA MINING GIANT, VEDANTA, MAKES MOVES IN THE SEMICONDUCTOR FABRICATION INDUSTRY

Vedanta Group, the largest Indian investor in Zambia’s mining industry, signed two Memorandum of Understanding (MoUs) with the state of Gujarat of India to set up a semiconductor fabrication plant commonly referred to as a fab unit, a display fab unit, and a semiconductor assembling and testing unit in Ahmedabad in western India.

This is a milestone project that will attract electronics ecosystem players across the value chain which entails manufacturers of highly sophisticated and sensitive equipment, materials (high purity Gases, chemicals, wafers, photomasks), and equipment service providers among others that will put the state of Gujarat on the global silicon map. The project envisages a total investment of USD 20 Billion that will provide employment to around 100,000 people.

The decision to set up the project in Gujarat comes after Vedanta and Foxconn announced in February that they will form a joint venture company in India. Vedanta will hold 60% of the equity in the JV while Foxconn will own 40%. The JV will look at setting up a semiconductor manufacturing plant in the next two years.

The proposed semiconductor manufacturing fab unit will operate on the 28nm technology nodes and the display manufacturing unit will produce Generation 8 displays catering to small, medium, and large applications.

Speaking on the signing of the MoUs, Vedanta Chairman Mr. Anil Agarwal, said: “We are delighted to announce that Gujarat will be the location for our display and semiconductor fab ventures. The state is well known globally for being a manufacturing hub and I hope that India’s upcoming, cutting-edge electronics ecosystem will thrive, with every state benefitting to develop their electronic manufacturing hubs. We are privileged to take one step further in supporting Prime Minister Modi’s vision of Aatm Nirbhar Bharat in this strategic sector.”

In Southern Africa, Vedanta Limited is represented by Vedanta Resources Holdings Limited and the Zambian subsidiary Konkola Copper Mines (KCM) the country’s largest integrated copper producer, with an entire production value chain comprising of open pit and underground mines, concentrators, a state-of-the-art smelter, a tailings leach plant, and a refinery.

It is the only mining company in the country that has operations in four locations, including Chingola, Chililabombwe, Nampundwe, and Kitwe, playing a key role in the communities around these mining areas.

The company’s product or service includes copper cathodes, copper-cobalt alloys, sulphuric acid, pyrite, and anode slimes. Vedanta has successfully operated KCM since 2004 and invested USD 3 billion which includes 1.3 billion in sustaining capex and USD 1.7 billion into project Capex.

Speaking on the signing of the MoUs, Vedanta Zinc International’s Executive Director and CFO, who also represents the Zambian operation Pushpender Singla, said: “We are proud to be part of an organisation that is focused on Growth, Diversification and Transforming communities. Vedanta is always open for such new investments in other international location like South Africa, Namibia and Zambia in partnership with government.

We are looking forward to leveraging some of the knowledge and resources from India’s JV investment and applying it to the Southern Africa Market.

Vedanta is committed to all its current and future growth projects in Southern Africa and is continuously looking for investment opportunities that will contribute to the country’s economic success.”

Mr. Brian Ho, VP, Foxconn Semiconductor Group, also present at the event, said, “I am delighted that the semiconductor plant will come up in the industrial state of Gujarat.

We applaud the efforts made by the Government of Gujarat, home of Prime Minister Narendra Modi, to attract semiconductor development and upgrade government efficiency.

Located in the western part of India, Gujarat has been recognized for its industrial development, green energy, and smart cities.

The improving infrastructure and the government’s active and strong support increases confidence in setting up a semiconductor factory. We look forward to working with our partners and the Gujarat leadership to further enhance the infrastructure required to cater to the ambitious semiconductor project”.

The broad plans for a semiconductor unit in India were announced after the COVID-19 pandemic upended global supplies of crucial electronic components used in everything from smartphones to cars. India has vowed to spend $30 billion to overhaul its tech industry and build local chip supply chains to avoid being dependent on foreign producers.

About Vedanta Limited:
Vedanta Limited, a subsidiary of Vedanta Resources Limited, is one of the world’s leading Oil & Gas and Metals company with significant operations in Oil & Gas, Zinc, Lead, Silver, Copper, Iron Ore, Steel, and Aluminium & Power across India, South Africa and Namibia. For two decades, Vedanta has been contributing significantly to nation building. With an empowered talent pool globally, Vedanta places strong emphasis on partnering with all its stakeholders based on the core values of trust, sustainability, growth, entrepreneurship, integrity, respect and care. Good governance and sustainable development are at the core of Vedanta’s strategy, with a strong focus on health, safety and environment, and on enhancing the lives of local communities. The group is focused on becoming the ESG leader in the natural resources sector and is committed to reducing carbon emissions to zero by 2050 or sooner. It has pledged $5 billion over the next 10 years to accelerate the transition to net zero operations. The group’s CSR philosophy is to eradicate poverty and malnutrition with a focus on the development of women & children through the marquee project Nand Ghar.

For any media queries, please contact
Mr Abhinaba Das, Head-Media Relations,Abhinaba.Das@Vedanta.co.in
Mr Masuzyo Ndhlovu, Corporate Communications, mndhlovu@vedantaresources.co.za

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