8 July, 2023 – Vedanta Group has announced the reorganisation of its semiconductor operations under its parent company, Twin Star Technologies. This move is part of Vedanta’s strategy to consolidate its semiconductor operations and focus on building its global company.
The move comes after the capital market regulator, the Securities and Exchange Board of India (SEBI), fined Vedanta Ltd Rs 30 lakh for violating the market regulator’s disclosure criteria.
The semiconductor business, which is now known as Avanstrate, is situated in South Korea and Taiwan. It has production operations in both nations and supplies display glass to key smartphone makers such as Samsung and Apple. The display glass firm, now known as Avangrid, is situated in India and sells display glass to major television companies such as Sony and LG.
“The acquisition will be accomplished through a share transfer at face value of Twin Star Technologies Limited’s (TSTL) Semiconductor and Display SPVs.” “TSTL is a wholly owned subsidiary of Volcan Investments Limited, the ultimate holding company of Vedanta Limited,” Vedanta stated in a statement.
Vedanta’s acquisition of the semiconductor and display glass companies is a key step. It demonstrates the company’s commitment to becoming a key player in the EMS sector. The EMS industry is rapidly expanding, with a $1 trillion market predicted by 2025. Vedanta’s purchase of the semiconductor and display glass businesses will provide it with a strong foundation in this expanding sector.
According to the report, the semiconductor market was worth USD 24 billion in 2022 and is expected to be worth USD 80 billion by 2026.
The display panel market is valued at $7 billion and is predicted to reach $15 billion by 2025. According to the statement, India now imports 100% of these requirements.
“We believe that semiconductors and display fabs are at the heart of any electronics ecosystem.” “This will also spawn the creation of multiple ancillary industries and opportunities in both downstream and upstream, creating jobs and acting as a GDP multiplier,” Vedanta’s semiconductor and display business global MD Akasrh Hebbar said.
The business stated that made-in-India semiconductors and display glass will enable affordable gadgets – cellphones, laptops, televisions, and electric vehicles – for all Indians.
Vedanta previously stated that it will invest Rs 1.5 lakh crore on a plant that will begin producing revenue in 2027.