Vedanta Limited shares rose over 12% on Wednesday as the company signed an agreement with a Taiwanese electronics manufacturing company to set up India’s first semiconductor plant in Gujarat. At 02.33 pm, the stock was trading 11.58% higher at Rs 309.80. Earlier, shares of the company saw a gap down opening in the morning. The stock of Vedanta Limited commanded a market value of Rs 110,103.44 crore, according to BSE.

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Vedanta and Foxconn will invest Rs 1.54 lakh crore ($19.5 billion) under a pact signed on Tuesday to set up semiconductor and display production plants in Gujarat. The 60:40 joint venture of Vedanta-Foxconn will set up a semiconductor fab unit, a display fab unit, and a semiconductor assembling and testing unit on a 1,000-acre land in the Ahmedabad district.

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“The investment will be funded through internal accruals and the company will not raise any fresh funds. India will now be the fourth country to soon start manufacturing semiconductors. We hope to finalize the land over the next fortnight and perform the ground-breaking ceremony within the next three months and the project is expected to operationalize over the next two years. We expect to break even in the next five years,” said Vedanta chairman Anil Agarwal after signing the Memorandum of Understanding (MoU) with the Gujarat government on Tuesday.

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Foxconn is acting as the technical partner, while Vedanta is financing the project as it looks to foray into chip manufacturing. The state’s infrastructure and the government’s active support “increase confidence in setting up a semiconductor factory,” Foxconn said in a statement.

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The government of India has said it will expand incentives beyond an initial $10 billion plan for those investing in semiconductor manufacturing as it aims to become a key player in the global supply chain for chips.

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Vedanta is the third company to announce a chip plant location in India after international consortium ISMC and Singapore-based IGSS Ventures, which are setting up in the southern states of Karnataka and Tamil Nadu, respectively.