Vedanta Resources deepens tech push with $4 billion India display factory
The newly appointed CEO of the untested display business of Vedanta Resources Ltd. to hire global talent to build and run a $4 billion plant in western India.
YJ Chen, who previously worked for Chinese display manufacturer HKC Corp, said that the display project will soon start recruiting from South Korea, Taiwan, Japan and other regions to set up an LCD manufacturing unit in India. He said the factory will provide up to 3,500 direct jobs.
“We need a lot of technicians, very talented,” Chen, who has 23 years of experience in the display industry, said in an interview in Mumbai, India’s financial hub. “This is the biggest challenge – people.”
Although it has a heavy debt burden, billionaire metals and mining conglomerate Anil Agarwal is expanding into electronics components to capitalize on India’s push to become a technology manufacturing hub. The display business is separate from the ailing Vedanta chip project and may find an easier path to success because it is a less technically demanding task.
Vedanta, which has partnered with Foxconn group subsidiary Innolux Corp. in the display business, plans to manufacture glass and assemble LCD panels at its new factory. Chen said the unit could start production by the end of 2025 if it secures crucial funding from Prime Minister Narendra Modi’s government.
Modi pledged $10 billion to attract chip and display makers to India, and promised that his administration would bear half the cost of setting up all semiconductor and display manufacturing sites. While Vedanta’s chip plans have yet to receive government support, its display business may find it easier to win state incentives with existing major technology partnerships. Vedanta also owns Japan-based AvanStrate, which makes the layers used in LCD panels.
Meanwhile, the world’s major display companies are phasing out LCD technology and moving to sharper OLED displays. Samsung Display in South Korea, a leader in display technology, has stopped producing LCD displays and is pouring billions into making next-generation displays. Local competitor LG Display is similarly cutting back on LCD manufacturing.
With display driven, Vedanta seeks to capture a slice of India’s display market, which it expects to grow to $30 billion annually over the next seven years. It will have to compete with cheap Chinese LCD screens and develop newer screens for long-term success.
“We need to build our supply chain in India,” Chen said. “We will focus on new designs to reduce costs and compete with the Chinese.”