Vedanta Ltd has selected Gujarat for its semiconductor project, which is considered as the first major step in its $20 billion joint venture with Taiwan’s Foxconn. The project will include display and semiconductor facilities near the largest city of Ahmedabad in the western state.

The company has obtained financial and non-financial subsidies including on capital expenditure and cheap electricity from Gujarat to build the semiconductor plants. While lobbying for incentives, Vedanta had sought 1,000 acres (405 hectares) of land free of cost on a 99-year lease, and water and power at concessionary and fixed prices for 20 years.

An announcement is expected this week with a formal signing of a memorandum of understanding between the two sides, which is likely to be attended by Chief Minister Bhupendrabhai Patel and Vedanta officials.

Other regions including India’s richest state of Maharashtra in the west and Telangana and Karnataka in the south had also been taken into consideration to host Vedanta-Foxconn’s mega project. Vedanta, an oil-to-metals conglomerate, in February, decided to diversify into chip manufacturing and formed a joint venture with Foxconn.