Vedanta Ltd to invest $500 mn in Tokyo-based display glass arm AvanStrate Inc

Anil Agarwal-owned mining conglomerate Vedanta Ltd intends to invest $500 million in its group company AvanStrate Inc to bolster its focus on research and development (R&D), manufacturing capabilities and product offerings.

The Tokyo-based display glass manufacturer and global supplier will invest in creating next-generation glass products for advanced packaging and potential applications in the semiconductor, biotechnology, automotive displays, and other high-growth sectors, Vedanta said in a statement.

With operations and R&D capabilities across Taiwan, South Korea and Japan, AvanStrate is also exploring collaborations for developing advanced products.

AvanStrate produces glass substrates for Gen 4 to Gen 8 TFT LCD (thin-film-transistor liquid-crystal display) panels, which are primarily used in electronic devices such as televisions, laptops, smartphones, tablets, wearables, and other displays including automotive and medical equipment.

"These investments are geared towards tapping opportunities that we see in key Asian markets like Taiwan, Japan, South Korea, where we already have a strong manufacturing and R&D footprint as well as an established customer base. We are also optimistic about our India plans and are hopeful that our application will be approved with the new Budget allocation. Besides land that had earlier been allocated to us, we have in place a strong, experienced team that is poised to hit the ground running." AvanStrate Global Managing Director, Akarsh Hebbar told Mint in response to queries.

Charlie Lee, CEO, AvanStrate Inc, added, “The expertise and support from Vedanta places us in a strong position to expand our R&D, scale up production, and meet evolving market demands. As ASI advances into new market segments, meeting the demand for high-performance materials, we are set to enhance our leadership in the display glass sector and beyond, with a clear focus on sustainability and long-term growth."

Vedanta said that the move was in line with its commitment to expanding its high-tech offerings, incorporating AvanStrate Inc. alongside Vedanta’s portfolio of businesses across the critical and future minerals, energy, and technology space.

The Vedanta Group will continuously explore innovation opportunities across automation, ESG (environmental, social, and governance), and sustainable energy to enhance the group’s technological capabilities and support the demands of a dynamic global market. 

Future manufacturing plans

Vedanta plans to set up its own display fabrication unit in Gujarat where capabilities from ASI will come in handy. The company had yet to respond to queries from Mint on the status of its display manufacturing facility and investments related to the planned unit.

The global market for specialty glass applications is estimated to be $42 billion and is projected to reach nearly $60 billion by 2030. AvanStrate, with its advanced manufacturing capabilities and strategic partnerships, is well-positioned to meet these demands and contribute significantly to the global supply chain.

Last year, Vedanta increased its holding to 98.2% in ASI through its wholly-owned subsidiary, Cairn India Holdings Ltd. In 2017, Cairn India Holdings had acquired a 51.63% stake in the Japanese company.

In 2022, Vedanta announced plans to establish India’s first integrated fab for display glass and panels.

In July 2023, Hebbar had said that Vedanta had tied up with technology and equity partners for its semiconductor fabrication project, and with Taiwan-based Innolux for its display fab unit.

Around the same time, Agarwal had told Mint that the Vedanta group would invest $5 billion in the first phase of setting up a semiconductor fabrication unit, a semiconductor packaging and testing unit, and a display fabrication unit in the Dholera Special Investment Region in Ahmedabad district of Gujarat.

Vedanta announced its $20 billion ( ₹1.54 trillion) investment plan for these projects, with the display fab unit entailing an investment of ₹94,500 crore and the integrated semiconductor fab unit and outsourced semiconductor assembly and test facility requiring ₹60,000 crore.

In February 2022, Vedanta had announced a joint venture (JV), Vedanta Foxconn Semiconductor Ltd, with Taiwanese contract manufacturer Foxconn Technology Group to set up India’s first semiconductor manufacturing unit under the $10 billion government-backed financial incentive scheme.

The JV ended in July 2023, with both parties taking individual routes to set up their own chip fabs.