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Southern Africa Mining Giant, Vedanta Limited, makes moves in the Semiconductor Fabrication Industry

Vedanta Limited, the largest Indian investor in South Africa’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 22
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 Zinc International (VZI). VZI is a
grouping of Zinc assets located in South Africa, Namibia and Zambia. Black Mountain Mining
(BMM) and Gamsberg Mine, both located in the Northern Cape Province, represent VZI’s South
African operations. VZI has invested R 6.5 billion into Gamsberg Phase I and has created permanent jobs of >1000 in South Africa and VZI’s future in South Africa remains bright with a recent R7 Billion investment into the Expansion of Gamsberg Mine and a R650 million investment
into their newest Iron Ore project at the Black Mountain Mining Operations. Both projects are
promising to create around 1500 jobs once fully operational.

Speaking on the signing of the MoUs, VZI’s Executive Director and CFO, 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 to new investment opportunities such as
this one in other international locations like South Africa, Namibia and Zambia in partnership with
the 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 region’s economic success.”

Mr. Brian Ho, VP, Foxconn Semiconductor Group, also present at the signing ceremony, 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

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.

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