Vedanta chairman Anil Agarwal on Friday said that the first phase of its semiconductor project will involve a USD 5 billion investment of the overall USD 20-billion outlay, and the venture will be ready with a made-in-India chip in two and a half years.

“Vedanta is fully committed to a fab and a display unit in India. David Reed (CEO of semiconductor fab unit) has created a fabulous plan to execute the fab venture and similarly YJ Chen for display glass manufacturing,” Agarwal further said, adding, “We have identified a tech partner for fab and are in the process of tying up with them”.

Agarwal reiterated that Vedanta group continues to remain committed to building India’s first semiconductor and display fabs in Dholera Special Investment Region in Gujarat, and substantial progress has happened to tie up with technology and equity partners in semiconductors.

In 2022, Vedanta had signed a pact with Foxconn, the world’s largest contract electronics maker, to set up semiconductor and display production plants in Gujarat. However, the partnership was terminated last month and both companies have decided to apply for India chip-making incentives separately.

“Vedanta has a good cash flow, we will make a capital allocation in Vedanta and there is a queue of people to give us equity and debt…but we want the tie-ups to be in place first, and have an ecosystem,” Agarwal added.