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Vedanta in active negotiations with Oppo, and Vivo on semiconductor deals

Photo: ET

Vedanta Group is in active negotiations with smartphone brands Oppo and Vivo, laptop manufacturers, and electronic device makers for the semiconductor chips it plans to roll out of its soon-to-be-announced semiconductor plant in India stated business unit chief Akarsh Hebbar. 

In January, Vedanta had announced a tie-up with Taiwanese electronics manufacturer Foxconn for a multi-billion dollar semiconductor manufacturing plant that would draw on the Centre’s $10-billion incentive package unveiled late last year.

While Hebbar qualified these conversations as “preliminary”, he said brands such as Oppo and Vivo and some in the automotive sectors have shown significant interest in semiconductor wafers. 

He said smartphones utilize wafers in the 28-65 nm category, besides the other appliances, and Vedanta’s interest areas also focus on the segment.

Having an end customer for its chips will also give the government more confidence as it evaluates its proposal for a subsidy, sources within the government said. 

The group is talking to several states, including Gujarat, Maharashtra, and Telangana, to set up its semiconductor plant in India. Hebbar said Vedanta has made technical assessments of the offer made by Gujarat, Maharashtra, and Telangana, qualifying them as “attractive.” 

For a semiconductor plant, high-fidelity power, water supply, and talent pool are crucial, which would weigh on Vedanta as it decides to set up its plant. 

An advisory committee set up by the electronics and IT ministry, comprising pioneers such as Intel veteran Vinod Dham, would contribute to the effort, announced in December 2021 to boost indigenous semiconductor manufacturing.