Vedanta to invest $5bn in first phase for semicon fab, comfortable in debt position: Anil Agarwal

livemint.com:

Vedanta will invest $5 billion in the first phase of setting up its semiconductor fab, packaging testing unit and display fab unit, for which capital allocation will be done through a mix of debt and equity, the group’s chairman Anil Agarwal said in an interaction with Mint. “The first phase will be $5 billion. We will take will the structuring because it will be now the main company, and Vedanta has a good cash flow.

We will make a capital allocation in the Vedanta. There is a queue of people to give us equity and debt," Agarwal said. The chairman of the mines-to-metals conglomerate said that the group was in discussions with three technology providers for each of the manufacturing units which are likely to fructify in coming months.

The chairman also assured that the first chip will be produced from the semiconductor fabrication unit in 2.5 years. "We're talking to three companies for separate tie ups for foundry, chips and packaging and testing. They should happen in a few months.

The first chip will be produced in two and a half years," Agarwal said. The total investment for the project will be in the range of $19 billion to $20 billion. Noting that relations with the Taiwanese contract manufacturer were cordial, Agarwal said that the group's partnership with Foxconn will continue in other areas of the semiconductor ecosystem, despite dissolving the joint venture.