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Vedanta Ltd and Taiwan's Foxconn signed an agreement on Tuesday with India's Gujarat, Prime Minister Narendra Modi's home state, to set up a $20 billion semiconductor project.

 The Gujarat government has partnered with Vedanta and Foxconn aiming an investment of Rs 1.54 lakh crore to achieve self-reliance in the field of semi-conductor manufacturing.

MoUs were signed in the presence of Chief Minister Bhupendra Patel and Union Minister for Electronics and Information Technology Ashwini Vaishnaw.

Vedanta Displays Limited will setup a Display Fab Unit in the state at an investment of Rs 94,500 crore, while Vedanta Semi-conductors Limited will set up an integrated Semi-conductor Fab Unit and OSAT (Outsourced Semi-conductor Assembly and Test) with an investment of Rs 60,000 crore.

Thus, the two together, will bring in investment of more than Rs 1.54 lakh crore and generate around 1 lakh new employment opportunities in the state.

The proposed investment will further support the development of upstream and downstream electronics manufacturing clusters and establishing of healthy trade linkages.

Vedanta and Foxconn Group will work closely with the state government to establish high-tech clusters with requisite infrastructure, including land, semi-conductor grade water, high quality power, logistics, and a skill ecosystem.

In addition to making India a global partner in the supply chain, the semi-conductor fab unit will prove to be a game-changer for the economy.

It will create significant employment opportunities for the youth and generate revenue for the state.

The proposed semi-conductor manufacturing fab unit will operate on the 28nm technology nodes with wafer size 300mm; and the display manufacturing unit will produce Generation 8 displays catering to small, medium and large applications.

Chief Minister Patel welcomed the mega investment, saying it has comes on a day when his government completes a year in power.

He further said that it is a testimony to the policy stability and policy support coupled with good governance and excellent infrastructure facilities existing in Gujarat.

The Union Minister Ashwini Vaishnaw highlighted the importance of this investment viz-a-viz Prime Minister Narendra Modi's vision for achieving self-reliance in the field of semi-conductor manufacturing.

Vaishnaw said that it is a step in the right direction for Gujarat helping towards building a one trillion-dollar digital national economy.