Vedanta to invest $5 bn in fab project

Billionaire Anil Agarwal said his Vedanta group will invest $5 billion in the first phase of setting up a semiconductor fab, a packaging and testing unit, and a display unit.

- Gulveen Aulakh

The capital allocation for the project will involve a combination of debt and equity, Agarwal said in an interview. "We will be structuring it, because it will now be with the main company Vedanta Ltd, and Vedanta has a good cash flow. We will make a capital allocation in Vedanta. There is a queue of people to give us equity and debt," Agarwal said. The chairman of the mining conglomerate said his group was in discussions with three separate technology providers for each manufacturing unit, and he expects the first chip from the fabrication unit to be produced in 2.5 years.