Vedanta share price jumps as firm signs MoU with Taiwanese company to set up India's first semiconductor plant in THIS state

Vedanta share price rose more than three and half per cent in weak market as the company entered into an agreement with a Taiwanese electronics manufacturing firm to set up India's first semiconductor plant in Gujarat.  

Reacting to the development Vedanta share price jumped around 3.5% to Rs 287.25 per share in early trade on the BSE. 

Apparently Vedanta and Taiwanese electronics manufacturing giant Foxconn will make one of the largest ever investments of Rs 1.54 lakh crore in setting up India's first semiconductor plant in Gujarat, as per news agecny PTI 

The 60:40 joint venture of Vedanta-Foxconn will set up a semiconductor fab unit, a display fab unit, and a semiconductor assembling and testing unit on a 1000-acre land in the Ahmedabad district. 

"The plant will start production in two years," Vedanta chairman Anil Agarwal told PTI after signing the Memorandum of Understanding (MoU) with the Gujarat government on Tuesday. 

Semiconductor chips, or microchips, are essential pieces of many digital consumer products - from cars to mobile phones and ATM cards. The Indian semiconductor market was valued at USD 27.2 billion in 2021 and is expected to grow at a healthy CAGR of nearly 19 per cent to reach $64 billion in 2026. But none of these chips is manufactured in India so far. 
A massive shortage in the semiconductor supply chain last year affected many industries, including electronics and automotive.