India Vedanta, Foxconn to invest $19.5 billion in India's Gujarat for chip project

Iceream

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There are a few coming up in the South...TN, AP & KA but Vedanta's investment is at least 3 times compared to the rest combined and is definitely politically motivated compared to the rest combined

Gujarat is a crappy location as well given the meat and liquor ban and it's cities also lack a metropolitan urban vibe which makes it hard to attract the right talent unless the R&D centers are established in nicer cities

A similar case would be Micron building it's $15bn chip fab in Boise, Idaho but it's R&D/Engineering development centers are located in bigger cities

On a side note, Gujarat's proximity to pak will make it susceptible to their rocket artillery and SOWs without the need of using long range missiles
 

Nilgiri

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Don't use google amp links, they do not work.

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Iceream

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Don't use google amp links, they do not work.

Give the direct link:


 

Jackdaws

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There are a few coming up in the South...TN, AP & KA but Vedanta's investment is at least 3 times compared to the rest combined and is definitely politically motivated compared to the rest combined

Gujarat is a crappy location as well given the meat and liquor ban and it's cities also lack a metropolitan urban vibe which makes it hard to attract the right talent unless the R&D centers are established in nicer cities

A similar case would be Micron building it's $15bn chip fab in Boise, Idaho but it's R&D/Engineering development centers are located in bigger cities

On a side note, Gujarat's proximity to pak will make it susceptible to their rocket artillery and SOWs without the need of using long range missiles
I have a lot of friends who own factories who have moved their factories to border towns in Gujarat like Valsad and Sarigram. But this has more to do with them getting a sweet deal from developers in Maharashtra for their land in MH.
 

Rajendra Chola

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It is a welcome overdue start.

But this is obviously a fairly long multi-year project so we will have to see how the crucial details go.

Hopefully over time this cluster extends south into Surat and then Maharashtra (Nashik-Pune-Mumbai triangle) too to leverage economies of scale and logistics in the region.

@Rajaraja Chola might have some comments to add when he is here next.

Lots of challenges involved. Chip manufacturing needs lakhs of litres of fresh waters per day. I recently learnt they can’t even use desalinated water. And associated infrastructure from existing ecosystem. Gujarat has none.

And existing chip design engineers are based in tech triangle in the south plus Noida. How is the company planning to attract resources to an remote area with almost no life?

19B is an bragging amount. No company is going to invest in a single go. If one reads the fine print it would say, they would invest 19B in 15-20 year timeframe. So Anil Agarwal is playing the politics game in the hope, Foxconn would take care of technological side. Foxconn is ruthless. They hired an ailing company in Calgary, Canada where I worked for an year and a half (they bought it before I joined and sold after I left) and sold it in less than 8 years seeing it is not making money in a way it was supposed to. Lots of IF factor involved and I really hope this investment succeeds.
especially one on display panel and it’s associated fabs. They are dominated by the Koreans as we speak.
 

Iceream

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Lots of challenges involved. Chip manufacturing needs lakhs of litres of fresh waters per day. I recently learnt they can’t even use desalinated water. And associated infrastructure from existing ecosystem. Gujarat has none.

And existing chip design engineers are based in tech triangle in the south plus Noida. How is the company planning to attract resources to an remote area with almost no life?

19B is an bragging amount. No company is going to invest in a single go. If one reads the fine print it would say, they would invest 19B in 15-20 year timeframe. So Anil Agarwal is playing the politics game in the hope, Foxconn would take care of technological side. Foxconn is ruthless. They hired an ailing company in Calgary, Canada where I worked for an year and a half (they bought it before I joined and sold after I left) and sold it in less than 8 years seeing it is not making money in a way it was supposed to. Lots of IF factor involved and I really hope this investment succeeds.
especially one on display panel and it’s associated fabs. They are dominated by the Koreans as we speak.
Bro i too hope it succeeds
 

Nilgiri

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Lots of challenges involved. Chip manufacturing needs lakhs of litres of fresh waters per day. I recently learnt they can’t even use desalinated water. And associated infrastructure from existing ecosystem. Gujarat has none.

And existing chip design engineers are based in tech triangle in the south plus Noida. How is the company planning to attract resources to an remote area with almost no life?

19B is an bragging amount. No company is going to invest in a single go. If one reads the fine print it would say, they would invest 19B in 15-20 year timeframe. So Anil Agarwal is playing the politics game in the hope, Foxconn would take care of technological side. Foxconn is ruthless. They hired an ailing company in Calgary, Canada where I worked for an year and a half (they bought it before I joined and sold after I left) and sold it in less than 8 years seeing it is not making money in a way it was supposed to. Lots of IF factor involved and I really hope this investment succeeds.
especially one on display panel and it’s associated fabs. They are dominated by the Koreans as we speak.

He brings up some further criticisms...all related to the opportunity cost of the subsidies involved:

FdKHKYCacAI116D.jpg


Assuming all proceeds relatively well....MH may indeed benefit more long term by having the subsidy density located nearby (in GJ) in that it can take advantage of the jobs and ecosystem spread by way of proximity ....but not shoulder effects of that subsidy burden.

@Jackdaws
 

Iceream

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He brings up some further criticisms...all related to the opportunity cost of the subsidies involved:

FdKHKYCacAI116D.jpg


Assuming all proceeds relatively well....MH may indeed benefit more long term by having the subsidy density located nearby (in GJ) in that it can take advantage of the jobs and ecosystem spread by way of proximity ....but not shoulder effects of that subsidy burden.

@Jackdaws
 

Rajendra Chola

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He brings up some further criticisms...all related to the opportunity cost of the subsidies involved:

FdKHKYCacAI116D.jpg


Assuming all proceeds relatively well....MH may indeed benefit more long term by having the subsidy density located nearby (in GJ) in that it can take advantage of the jobs and ecosystem spread by way of proximity ....but not shoulder effects of that subsidy burden.

@Jackdaws

The cost of subsidies quoted is blowed out of context. GoI has earmarked 10B subsidy fund under PLI for 5 companies. And the PLI amount will
Be only to the amount of money invested till that point in time to a max of 10B. Don’t think Vedanta and Foxconn is stupid enough to pour 19B in 3 years. My guess is they will invest max of 3-5 B for the next 10 years similar to other companies like IGSS etc.
 

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