Vedanta to create hub to manufacture iPhones, TV equipment in India

[Lava820]

NEW DELHI, Sept 14 (Reuters) - Vedanta Ltd (VDAN.NS) will look at creating a hub to manufacture Apple's (AAPL.O) iPhones and TV equipment, along with possibly diving into the electric vehicle sector, Chairman Anil Agarwal said in an interview with CNBC TV18 on Wednesday.

Vedanta on Tuesday announced a $19.5 billion investment with Taiwan's Foxconn (2317.TW) to set up semiconductor and display fabrication plants in Gujarat.

The company will create a hub in the western Indian state of Maharashtra to manufacture iPhones and other television equipment, Agarwal said in the interview, adding that this would be "kind of forward integration for the Gujarat JV plant".

The oil-to-metals conglomerate could also look at the electric vehicle (EV) sector, Agarwal added.

Rolling out EVs is central to Prime Minister Narendra Modi's carbon reduction agenda. By 2030, India wants electric models to account for 30% of total car sales.

Vedanta sees no funding problems for Indian chip JV with Foxconn

India's Vedanta does not see any funding problems for a $19.5 billion semiconductor venture with Taiwan's Foxconn , its chairman told CNBC-TV18 on Wednesday, adding he hoped the project would foster local electronics clusters.

www.reuters.com

 

[MH.Yang]

As expected, Foxconn's so-called "semiconductor industry" is the assembly line of electronic products. Labor intensive low paid jobs.

 

[Black Tornado]

As expected, Foxconn's so-called "semiconductor industry" is the assembly line of electronic products. Labor intensive low paid jobs.

Offcourse anything outside China is assembling and inside china is ultra high skill manufacturing .

 

[nahtanbob]

As expected, Foxconn's so-called "semiconductor industry" is the assembly line of electronic products. Labor intensive low paid jobs.

Doesn't large country like India want labor intensive industries ?

 

[Turingsage]

Doesn't large country like India want labor intensive industries ?

A large country needs a mixture that fits its wider and larger needs.
All capital intensive and skilled labour industries create a huge swathe of tertiary lower skill jobs.
Highly skilled labour needs housing, transport, shopping, education for children, inclusion of wider skill courses at UNI level, and thousands of other needs that have to be met by lower skilled workforce.

 

[nahtanbob]

A large country needs a mixture that fits its wider and larger needs.
All capital intensive and skilled labour industries create a huge swathe of tertiary lower skill jobs.
Highly skilled labour needs housing, transport, shopping, education for children, inclusion of wider skill courses at UNI level, and thousands of other needs that have to be met by lower skilled workforce.

Will capital intensive industries that are not labor intensive help a large country like India ? You need probably some of them.
Unless they are downstream impacts it won't help

 

[MH.Yang]

Doesn't large country like India want labor intensive industries ?

No, just the opposite. At this stage, labor-intensive enterprises are more important to India than high-tech enterprises. Indians need enough jobs now, not a few high paying jobs.

I'm just making a judgment that India lacks industrial clusters. If Foxconn make chips in India, the marginal cost will be very high. Therefore, Foxconn's so-called "semiconductor industry" should be an electronic product assembly plant, because it is also a semiconductor industry.

To be honest, China has also built many "semiconductor industrial parks" in Africa. But they are actually assembling mobile phones.

 

[nahtanbob]

No, just the opposite. At this stage, labor-intensive enterprises are more important to India than high-tech enterprises. Indians need enough jobs now, not a few high paying jobs.

I'm just making a judgment that India lacks industrial clusters. If Foxconn make chips in India, the marginal cost will be very high. Therefore, Foxconn's so-called "semiconductor industry" should be an electronic product assembly plant, because it is also a semiconductor industry.

To be honest, China has also built many "semiconductor industrial parks" in Africa. But they are actually assembling mobile phones.

semiconductors and electronic assembly are two different things. Electronic assembly is suitable for economy like India. India can benefit from semiconductor fabrication but it is capital intensive and knowledge intensive industry with a lot of demand on infrastructure

 

[Wood]

iPhones are already manufactured in southern states. More recently, there was news that Google was also looking at making future Pixel phones in India.

The value addition for phone manufacturing in India will improve thanks to investment like this Vedanta one

Edit: Current value addition to iPhones made in India is 18 to 20%. TATA is in talks (with Wistron) to increase this by 5 to 6%. Vendanta may help increase that further

Tata Group in talks with Wistron for manufacturing iPhones in India

For Wistron, India is yet another battle ground where it faces rivals such as Foxconn and Pegatron

www.business-standard.com

 

[MH.Yang]

semiconductors and electronic assembly are two different things. Electronic assembly is suitable for economy like India. India can benefit from semiconductor fabrication but it is capital intensive and knowledge intensive industry with a lot of demand on infrastructure

The real semiconductor industry refers to semiconductor materials, semiconductor equipment, chip design and chip manufacturing. But the assembly and manufacturing of electronic products, computers and other different consumer fields can also be regarded as the semiconductor industry in a broad sense. After all, there are chips in these products.

 

[Turingsage]

Will capital intensive industries that are not labor intensive help a large country like India ? You need probably some of them.
Unless they are downstream impacts it won't help

Yes they will.
This does not mean India puts all its eggs in capital intensive industries.
It means India , the largest population in the world, needs certain strategic capital intensive industries to back up things like car and truck manufacturing where India is becoming a large manufacturer AND consumer.
All CNC machinery manufactured will need semiconductor components as will all kinds of domestic aids ( washing machines, TV's etc etc.
In UK, where there is are large capital intensive industries, there is a SEVERE shortage of low skilled labour. You cannot get plumbers, electricians etc
Crops are withering in the fields because we have no labour to pick crops.
Wages of low skilled labour surpass that of degree holding graduates.
Capital intensive industries drag the rest of the economy into a higher orbit that includes low skilled labour

 

[INS_Vikrant]

All major investments in India are happening only in 7-8 states, seriously most of the states need to get their act together.

 

[Lava820]

To be honest, China has also built many "semiconductor industrial parks" in Africa. But they are actually assembling mobile phones.

Quite rich coming from you guys. China itself imported $400 billion worth of semiconductors in 2021

US Wants Dutch Supplier to Stop Selling Chipmaking Gear to China

The US is pushing the Netherlands to ban ASML Holding NV from selling to China mainstream technology essential in making a large chunk of the world’s chips, expanding its campaign to curb the country’s rise, according to people familiar with the matter.

www.bloomberg.com

 

[LakeHawk180]

All major investments in India are happening only in 7-8 states, seriously most of the states need to get their act together.

I hope this Gujarat love affair ends soon. But for an industry like this, that probably makes sense - especially from a supply chain perspective.

I know of atleast 20 semiconductor manufacturers who announced plans to set up manufacturing plants in India over the last two years.

I think disparity between states is only going to grow.

 

[Wood]

Interesting article at NYT about Apple's value addition in China. Apple now sources 25% of components (by value) for iPhone from Chinese local suppliers. I hope for the similar ecosystem development in India. This will allow for Indian phone brands to develop and manufacture phones in India

How China Has Added to Its Influence Over the iPhone

Apple is taking small steps toward India. But the production of its latest phone, introduced on Wednesday, shows how difficult it will be to make big changes.

www.nytimes.com