Vedanta Ltd on Friday said it will acquire the semiconductor and display businesses from sister concern Twin Star Technologies Ltd.
Vedanta's announcement comes days after SEBI imposed a penalty for wrong disclosures
Vedanta Ltd on Friday said it will acquire the semiconductor and display businesses from sister concern Twin Star Technologies Ltd.
The new structure will make Vedanta India's first company in Integrated Semiconductor and Display Fab Business.
Twin Star Technologies is a wholly-owned subsidiary of Volcan Investments Ltd which is the ultimate holding company of Vedanta.
"The acquisition will be effected by way of a share transfer at face value of Twin Star Technologies Limited's (TSTL) Semiconductor and Display SPVs. TSTL is a wholly owned subsidiary of Volcan Investments Limited, the ultimate holding company of Vedanta Limited," Vedanta said in a statement.
With this restructuring, Vedanta Limited announced the addition of semiconductors and display glass manufacturing ventures to its diversified 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 smart phone, laptop and an electric vehicle," Vedanta Chairman Anil Agarwal said.
Vedanta said that semiconductor and display glass manufacturing represents a large growth opportunity for India.
It said that the 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. Currently, India imports 100 per cent of these requirements, the statement said.
"We believe that semiconductors and display fab are at the core of any electronics ecosystem. This will also spawn the creation of multiple ancillary industries and opportunities in both downstream and upstream, creating jobs and will be a GDP multiplier," Vedanta's semiconductor and display business global MD Akarsh Hebbar said.
The company said that made-in-India semiconductors and display glass will facilitate affordable electronics -- smart phones, laptops, televisions, and electric vehicles for all Indians.
The company had earlier announced that the plant will be set up with an investment of around Rs 1.5 lakh crore and start making revenue by 2027.
"I believe that India can become the next semiconductor hub for the world. It has all the ingredients for success," Vedanta's Semiconductor Business CEO David Reed said.
Vedanta has its presence in the LCD glass substrate business through its subsidiary Avanstrate Inc.
"This is India's time to become only the 5th country in the world to manufacture display glass. The impact on consumers in terms of affordability of devices will be huge," Display Business CEO Y J Chen said.