Modi and Patel fail to make Gujarat a Silicon Valley

Dilip Patel

Gandhinagar, 26 July 2023
The Government of India had announced the $10 billion Semicon India program to develop the semiconductor and display manufacturing ecosystem in India. But now there is a hindrance. On 11th July 2023, Taiwan’s Foxconn Technology canceled a $19.5 billion deal with India’s Vedanta Group to set up a semiconductor manufacturing plant in Gujarat. The $19.5 billion deal was considered the world’s largest deal for semiconductor manufacturing. With this, Modi has got a big blow. Now a big show is going to happen in Gandhinagar to heal the pain.
Foxconn is famous for supplying components used to make Apple or iPhone.
Gujarat was to be made Silicon Valley with an investment of Rs 1.54 lakh crore by Vedanta. To make this, there are going to be some fake MoUs again in Gandhinagar like before.
With an aim to showcase India as a potential hub for semiconductor design, manufacturing, R&D and manpower development, the Semiconductor India Conference 2022 was organized in Bengaluru from April 29 to May 01, 2022, inaugurated by Prime Minister Minister Narendra Modi did it.
Now,
SemiconIndia 2023 will be held from 28 to 30 July 2023 at Mahatma Mandir, Gandhinagar. Which is to be inaugurated by Prime Minister Narendra Modi.
Earlier, the Semiconductor Industry Expo was inaugurated by Gujarat Chief Minister Bhupendra Patel on July 25, 2023.
On 21 February 2023, Vedanta Group signed an MoU for investment of Rs 1.60 lakh crore in the presence of Chief Minister Bhupendra Patel. Semiconductor chips were to be made for the display of mobile phones and other products. Anil Agarwal of Vedanta had to set up a semiconductor factory. Modi had to announce this. But now there is a dispute between Vedanta Group and the foreign company.

Taiwan’s contract manufacturing firm Foxconn has started looking for another business partner. May be it is Tata Group.
Bhupendra Patel’s government tried to take credit for the semiconductor manufacturing project by announcing the setting up of a semiconductor factory. However, the matter is now stalled due to differences between Vedanta and Foxconn. Differences arose between the two partners.
When Foxconn decided to find another partner, the government was concerned about the financial stability of the Vedanta group.
Another Vedanta company raised $450 million to repay debt by pledging equity from Trafigura and Glencore. Which shows the serious economic situation.
Vedanta-Foxconn’s 1 lakh 54 thousand crore semiconductor project came to Gujarat instead of Maharashtra but could not survive. Can now advertise with any other company. Maybe Tata. The Gujarat government is keeping it a secret.

Gujarat at number 10
Had the agreement been implemented, Gujarat would have once again become number one in India’s industry. According to the survey of the Department of Industrial Policy and Promotion of the Central Government published in the year 2015 by RBI, Gujarat was at number one in the year 2015. Gujarat was third in 2016, fifth in 2017 and tenth in 2018.
The Gujarat State Electronics Mission has been set up as the nodal agency for investment.
India’s semiconductor market was estimated at $15 billion in 2020. Taiwan is the center of semiconductor chip and glass fab production.

New company
Foxconn and Tata will tie up for their semiconductor sector venture in Gujarat. The earlier agreements made by Vedanta will remain in force. Gujarat will be considered an insult. Those with whom the Bhupendra Patel government had signed an investment agreement worth Rs 22,500 crore have not been invited. This incident shows the fury of the government.
Which companies will participate in the seminar?

Germany’s Infineon and Japan’s Foxconn will be at the seminar. When semiconductor chip, fab display, chip design, assembling experts from all over the world are coming to Gandhinagar, Gujarat is going to be flooded. America’s Micron, Samsung, Dell, Tesla, Apple, Lava, Cadence, Transform, Qualcomm Grantwood Technology, Nvidia, Wolfspeed will be present. NXP Semiconductors, ST Microelectronics The Netherlands. There will be Renesas Electronics of Japan. Canada’s Tensorent company and India’s Tata, Reliance. Not even a single company of Modi’s friend Adani will remain.
Jairam Ramesh said, never trust sponsored headlines.

Not Dholera
Apart from Sanand, Dholera in Gujarat, lands near Sabarkantha and Kutch have been identified for this work. The land of many BJP leaders is here.
Land, tax, electricity, water will be given to the company at throwaway prices. There will be a big claim to give a job. The government claims that such a structure is ready in Dholera and Sanand. But industries cannot be set up in Dholera. There is waterlogged land.

Plant in Sanand
Micron Technology will set up a plant in Sanand, Gujarat. In this project a total of Rs. There will be an investment of 22,500 crores. 5,000 can get direct employment. The government has given the project approval letter and land allotment to Kapani. The plant will be commissioned in 18 months. Applied Materials will invest $400 million to build an engineering center. Other major semiconductor companies, including Lam Research, have hired 60,000 Indian engineers.

Will train
Micron said it will invest $82.5 million in India. However, the investment will be in the chip testing and packaging sector, not manufacturing. This investment will increase to $ 2.75 billion with the financial support of the Central Government of India and the State Government of Gujarat.
Companies in Gujarat again sent their renewal plan to the government. The Semiconductor Policy (2022-2027) was announced by the Government of Gujarat.
Industries benefited from the policy
The Semiconductor Policy was announced on 27 June 2022 to attract investment in the chip manufacturing sector in Gujarat. In which the opposition is assuming that industries will get relief like Rs 2 lakh crore.

1 – Capital assistance will be provided by the Government of India. Relief of 76,000 crores will be given by the Government of India.
2- Additional assistance will be provided by the State Government at the rate of 40 percent of the capital assistance.
3- Eligible projects to be set up in Dholera Semicon City in Dholera Sir will be given 75 percent subsidy on first 200 acres of land purchase.
4-50 percent subsidy will be given on additional land.
5- Electricity tariff subsidy will be given at Rs 2 per unit.
6- Exemption from paying electricity charges.
7-Good quality water will be made available at Rs 12 per cubic meter for five years.
8- All approvals will be given from one place.
9- Stamp duty on lease, sale, transfer of land was waived.
2 lakh jobs will be given in 10-5 years.
semiconductor companies in india
Sankhya Labs Semiconductor Solutions, Bengaluru
ASM Technologies Stock Listed: Semiconductor Engineering, Bengaluru
Broadcom Inc Semiconductor & Infrastructure Software Solutions, Bangalore
Chiplogic Technologies Semiconductor Design Services, Bangalore
CDIL Semiconductor Manufacturers, New Delhi
Moschip Semiconductor Technologies Fabless Semiconductor, Hyderabad
Infochips Semiconductor Design Services, Ahmedabad
Tata Alexi AI, Machine Learning, NLP, Bengaluru
Semiconductor Technology Semi-Conductor Laboratory R&D, Mohali
NXP Semiconductor Semiconductor Startup Incubation, Bangalore
Vedanta

Vedanta Group projects revenue of $3.5 billion in 4 years from semiconductor manufacturing.
Vedanta had to raise $300 million through debt. There were plans to set up semiconductor and display plants in India.
Anil Agarwal’s focus was on the semiconductor business, Vedanta Group was about to invest $20 billion in chip manufacturing.
5 company
5 companies will set up semiconductor plants in the country Rs. An investment of 1.53 lakh crore was proposed.
world’s third largest industry
In July, Foxconn and Vedanta group companies in Maharashtra invested Rs. It was decided to invest Rs 2 lakh crore. 2 lakh jobs will be available in India! Semiconductors are the fourth most traded commodity in the world. Crude oil, motor vehicle, edible oil and semiconductor trade at number three in the world.
The total global semiconductor trade was valued at $1.7 trillion in 2019. It will reach 2 trillion in 2022. 1 trillion means one lakh crore. 800 lakh crore rupees. China is a leader in design and manufacturing. China accounts for 35 percent of chip-based device production. The US is the largest consumer of semiconductor-based devices. 33 percent of semiconductor manufacturing companies are headquartered in the US.
Taiwan
Two of the five largest semiconductor manufacturing foundries are located in Taiwan. Taiwanese company TSMC manufactures logic chips, which are used in data centers, AI servers, personal computers, smartphones, etc. 9 percent market share. America makes 38 percent of the chips. It was followed by South Korea (16 percent) and Japan (14 percent). Although Taiwan’s share of semiconductor consumption is only 3 percent, the US uses 25 percent and China 25 percent. Chip or semiconductor production in India is negligible.
China in India
52 big Chinese companies are working in India. In which 40 percent Chinese companies have captured India in the production of vehicles. China has captured 35 percent of India’s economy. But Chinese companies do not make chips in India. Many companies in Gujarat are owned by China.
America
America is beginning to worry that it is losing its technological hold on China. China is also giving competition to America in the field of technology. It has been decided to give tax exemption to companies making computer chip manufacturing plants in America. It has been decided to stop the help given to American companies working in China. Those receiving CHIP funds from the government are banned for 10 years. US President Joe Biden has approved $280 billion for high-tech manufacturing and scientific research.
US President Joe Biden announced the setting up of a semiconductor assembly, testing, marking and packaging facility in India by Micron Technology Company.
The US has banned tech companies from building advanced technology facilities in China. This order will apply to companies receiving financial assistance from the US government. These companies will not be able to set up any advanced factory in China for the next 10 years. This decision of the Joe Biden administration is being linked to the ongoing trade war with China.
In addition, the Biden administration

It has also outlined plans to increase domestic production of semiconductors. In fact, production in Taiwan’s semiconductor manufacturing units has been affected due to tensions with China. This has led to a severe shortage of chips and semiconductors around the world.
The Biden administration has also announced a special $50 billion package to build the semiconductor industry. It is also being seen as an attempt to end America’s dependence on China. A few days ago, the US semiconductor industries also sought more government assistance from the Biden administration, saying that the shortage of semiconductors has slowed down their production, which is not good for the country’s economy.
The US currently produces about 10% of the global supply of semiconductors, which are used in a range of products from cars to mobile phones. The Chinese embassy in Washington has opposed the ban on semiconductors. It has been described as reminiscent of the Cold War mentality. Japan and European countries have also decided to increase their investment in semiconductor production there instead of China.
American companies find cheap labor and high-quality infrastructure in China. Such is the situation that companies have to come to India for the benefits they get in China.
China’s economy is growing very fast in the world due to its manufacturing sector. China’s economy was US$14.14 trillion in 2019, while the world’s largest economy was US$27.30 trillion. This gap is reducing every year.

Chinese companies in India
Chinese investors have invested 40% of their total investment in the Indian automobile industry. Vivo, OnePlus, Huawei, Xiaomi, Haier, Volvo, Oppo, Motorola and others are some of the popular Chinese companies that are based in India.
Indian citizens demand boycott of Chinese products and companies, but Chinese companies are increasing in India. India sends 8% of its total exports to China while China sends only 3% of its total exports to India. India’s trade with China is set to decline from US$ 89.71 billion in 2017-18 to US$ 87.07 billion in 2018-19 and to US$ 70 billion in 2021-22. China has more advantage in trade with India.
The grip of Chinese investors on the Indian economy has increased.
FICCI reports that Chinese investors have invested in the following Indian sectors:-
1. Automobile Industry (40%)
2. Metallurgical Industry (17%)
3. Power (7%)
4. Construction (5%)
5. Services (4%)
52 Chinese companies in India
YAPP India Automotive Systems Pvt Ltd, Xiaomi (MI), Alibaba Group, UC Browser, Medarmacy, Paytm, Hike Messenger, Snapdeal, PubG, Ola, MakeMyTrip and Ibibo, Flipkart, Shanghai Electric India Pvt. Ltd. Vs. battery doctor
Clean Master, CM Backup, CM Browser, Huawei, Haier, Oppo, Bidens, News Republic, Coolpad, ZTE, Beijing Automotive, Motorola, Visco (I) p. Ltd. , LeEco, ZTE Kanguntelekon Co. (I) P. Ltd. , Lenovo, Volvo, Vivo, Tencent Holding, Chongqing Lifan Industry Limited, Gionee, China Dongfeng International, Gfive, Sany Heavy Industry Limited. , Cheetah Multitrade P. Ltd. , TCL, I.Pubji, I.WeChat, MG, 1Plush, Cheetah Mobile, WhatsApp, China Dongfeng International, Meizu, Baoshan Iron & Steel Limited. , , Techno, Shougang International, Cheetah Keyboard, CM Browser and Tap Tap Dash are the companies.

The Government of India cannot stop Chinese companies from doing business in India even if they want to because both countries are members of the World Trade Organization and the main objective of this organization is to promote free trade. India may impose anti-dumping duty on imports from China.