Semiconductor Manufacturing To Touch $110 Billion, Vedanta Dives In

Vedanta Resources is set to make aggressive investments in oil, zinc and gas while foraying into the manufacturing of semiconductors. Speaking at Vedanta's 57th AGM on August 10, the company founder and chairman Anil Agarwal announced that the company plans to tap into the semiconductors market, in India, which is expected to touch $110 billion by 2030.

“Not only are semiconductors in short supply globally, but India is also 100 per cent import dependent. The domestic consumption of semiconductors is expected to cross USD 80 billion by 2026 and may touch USD 110 billion by 2030," Agarwal said in his address to the shareholder at the AGM, reported Hindustan Times. 

Vedanta has already signed an MoU with Foxconn, one of the world's largest electronics manufacturers, to set up an integrated semiconductor manufacturing facility in India.

The Vedanta chairman said that the financial year 22 had been the best year for Vedanta as the company clocked a record revenue of Rs 131,192 crore and EBITDA (earnings before interest, taxes, depreciation, and amortization) of Rs 45,319 crore, a 66 per cent spike in year-on-year numbers.

“Our strong cash flows put the company in a great position for growth. We have put in place a robust capital allocation strategy that aims at deleveraging our Balance Sheet,” he told the shareholders while adding that the company had contributed more than ₹ 54,000 crores to the government exchequer in FY 22.

Vedanta is set to make a $ 2 billion CAPEX investment in oil and gas, and aluminium in the current financial year as part of its growth plan and integration plan.

"I am excited about our acquisition of Nicomet which makes us the sole producer of nickel in India, a metal which is in high demand for electric vehicles and batteries,” Agarwal added.

As part of its carbon neutrality efforts, Vedanta has pledged $5 billion in the next five years and aims to be net zero by 2050 or sooner. Further, the company also targets to become positive with 2.5 GW of renewable energy by 2030, reported Moneycontrol

Anil Agarwal, in his address, added that the Indian economy was doing well compared to other countries at a time when most global economies are disrupted caused by the COVID-19 pandemic and the Russia-Ukraine war.