Vedanta Limited will finalise a location for its $20 billion semiconductors and display unit in India by mid-June and will have the first chip product ready in two years.

Oil-to-metals conglomerate Vedanta said in February that it would diversify into chip manufacturing and declared plans to form a joint venture (JV) with Taiwan's Foxconn to help Prime Minister Narendra Modi's movement to make India a semiconductor manufacturing hub.

Vedanta has a total planned investment outlay of $20 billion for two separate plants for chip and display manufacturing.

Foxconn is our technical partner. The company may not take equity partners for the fab, Vedanta Chairman Anil Agarwal told the media.

In Davos, the Apple contract manufacturer will have technical accountability for the operation, from providing the tech to creating semiconductors, Agarwal said.

Vedanta is striving for incentives from Modi's government and is also in discussions with several Indian states on the plant's location.

On the sidelines of the annual World Economic Forum the first phase of Vedanta's project will have an investment of $2 billion, Agarwal said.

Private equity wants to be part of India's semiconductor development, and there was no lack of funds.

India estimates its semiconductor market will achieve $63 billion by 2026, corresponding with $15 billion in 2020.

You have to make another Taiwan in India, Agarwal said, noting that India will have to concentrate on bringing the whole semiconductor ecosystem locally for it to be an international powerhouse.

The Indian government has said it will extend incentives beyond an initial $10-billion plan for those investing in semiconductor manufacturing, as it seeks to become a critical player in the global supply chain for chips.

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Also read: Vedanta Ltd in a race to become India's first chip maker