Foxconn And Vedanta To Build $19 Billion India Chip Factory

Vedanta and Foxconn have announced $19.5bn (PS16.9) for constructing one of India's first chipmaking plants.

As India pushes for chip manufacturing, the Indian mining giant and the Taiwanese company are in a partnership.

Prime Minister Narendra Modi announced a $10 billion package to attract investors last year.

Anil Agarwal, Vedanta's chairman, said they are still looking for a site. This is about 400 acres of land close to Ahmedabad (Gujarat's capital). 

Both Indian and foreign companies have had difficulties with large tracts of land in the past.

Experts say that even with Modi's signature "Make in India" policy, which is designed to attract global manufacturing companies, there are still challenges when navigating the country's bureaucracy.

However, Bhupendrabhai, the Chief Minister of Gujarat, stated that the project would be "welcomed with red carpet rather than any red tapism". 

The project is expected to create 100,000 jobs in Gujarat, heading for December elections. 

In a state where the BJP faces stiff competition from the opposition parties, the project is also anticipated to be a major factor in creating 100,000 new jobs. 

The Memorandum of Understanding states that the facility will begin manufacturing chips in two years.

In a tweet, Mr. Agarwal noted that India's Silicon Valley was now closer.