Brings them under Indian mining major Vedanta
London-headquartered Vedanta Group has restructured its semiconductor and display glass businesses, which were earlier held by Twin Star Technologies (TSTL), and have now brought them under its listed Indian entity. Following the rejig, mining major Vedanta (VEDL), a subsidiary of London-headquartered Vedanta Resources (VRL), will house these businesses.
TSTL is a wholly-owned subsidiary of Volcan Investments, the holding company of VEDL, the company said in a stock exchange update.
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These ventures are being moved to VEDL, pursuant to its acquisition of the entire stake in Vedanta Foxconn Semiconductors and Vedanta Displays from TSTL. The shares of the two firms are being acquired at their face value, which was approved by VEDL’s board at its meeting on Friday, it added.
The restructuring will add semiconductors and display glass manufacturing ventures to VEDL’s portfolio.
“Vedanta is committed to making India self-reliant in electronics. This is the beginning of the creation of a Silicon Valley in India, a cutting edge and world class electronics ecosystem. My dream is for every Indian youth to have an affordable smartphone, laptop and an electric vehicle (EV),” Vedanta chairman Anil Agarwal said.
Earlier there were reports that Taiwanese contract manufacturing firm Foxconn had begun to reach out to certain business houses in India to find a new partner for its semiconductor business, after its joint venture with Vedanta Group has been facing several hurdles.
VEDL said its twin ventures will provide added momentum to the government’s goal of AatmaNirbhar Bharat in electronics.
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“I believe that India can become the next semiconductor hub for the world. It has all the ingredients for success,” David Reed, CEO of Vedanta’s Semiconductor Business, said.
VEDL already has a presence in the liquid-crystal display (LCD) glass substrate business through its subsidiary Avanstrate. The company had also signed a Memorandum of Understanding, through separate special purpose vehicles in September 2022 with the Gujarat government to set up the semiconductor and display fabs in the state.
VEDL will leverage its expertise in large-scale manufacturing and operational excellence and partner with the best global companies to drive the two businesses. Made in India semiconductors and display glass will facilitate affordable electronics – smartphones, laptops, televisions and electric vehicles – for all Indians, it added.
Indian semiconductor market stood at $24 billion in 2022 and is estimated to reach $80 billion by 2026. The display panel market is estimated to be worth $7 billion and is expected to grow to $15 billion by 2025.
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The global semiconductor industry is at an exciting juncture. India is in a sweet spot to capitalise as the world looks to diversify critical supply chains in semiconductors and display fab. In approving these acquisitions, the Vedanta’s board believes Vedanta and its shareholders, and India’s economy, can benefit from the tremendous opportunity these shifting global dynamics provides, it added.
