Vedanta Resources Ltd., led by billionaire Anil Agarwal, is making a significant push into the electronics sector with the announcement of a $4 billion display factory in western India. The newly appointed CEO of Vedanta’s display business, YJ Chen, has revealed plans to hire global talent from countries like South Korea, Taiwan, and Japan to build and operate a liquid crystal display (LCD) panel fabrication unit in India. The factory is expected to create approximately 3,500 direct jobs.
Vedanta’s expansion into the electronics sector comes as India strives to establish itself as a prominent technology manufacturing hub. The display business is distinct from Vedanta’s struggling chip venture, but it is expected to have a smoother path to success as it is considered a less technically demanding endeavor.
To support its display business, Vedanta has partnered with Innolux Corp., an affiliate of Foxconn Group. The company intends to manufacture glass and assemble LCD panels at its new factory. However, the project’s progress and commencement of production by the end of 2025 depend on crucial funding from the Indian government, which has pledged $10 billion to attract chip and display manufacturers to the country. Prime Minister Narendra Modi’s administration has promised to bear half the cost of establishing semiconductor and display fabrication sites.
While Vedanta’s chip plans are still awaiting government backing, the display business is poised to benefit from existing partnerships with leading technology companies, making it more likely to secure state incentives. Vedanta also owns AvanStrate, a Japan-based company that produces layers used in LCD panels, further bolstering its capabilities in the display industry.
It is worth noting that major display companies worldwide are gradually phasing out LCD technology in favour of sharper and more advanced OLED displays. South Korea’s Samsung Display Co., the leader in display technology, has already ceased LCD production and is investing heavily in next-generation displays. Similarly, LG Display Co., another South Korean company, is scaling down its LCD manufacturing operations.
Vedanta aims to capitalise on India’s growing display market, which is projected to reach an annual value of $30 billion over the next seven years. However, the company faces challenges such as competition from inexpensive Chinese LCDs. To ensure long-term success, Vedanta plans to build its own supply chain within India, focus on developing new designs to lower costs, and compete effectively with Chinese manufacturers.
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