Vedanta partners with Foxconn for manufacturing semiconductors

Vedanta has signed an agreement with Taiwan’s Hon Hai Technology Group, better known as Foxconn, to manufacture semiconductors in India.

This partnership comes after the government announced a Rs 76,000 crore production-linked incentive scheme for semiconductor and display manufacturing in an attempt to boost local production.

According to the memorandum of understanding, Vedanta will hold the majority stake at 60 percent while Foxconn will be the minority shareholder. Vedanta’s Chairman Anil Agarwal will head the joint venture.

Although Foxconn is known primarily as a lead iPhone manufacturer, it has been lately venturing into semiconductors for EVs to other electronic goods. The deal is said to be worth $118.7 million. The indigenous group had said back in December 2021, that it will invest up to Rs.60,000 crores in the establishment of a chip and glass manufacturing ecosystem in the country over the coming three years.

“It will provide a significant boost to domestic manufacturing of electronics in India. Discussions are currently ongoing with a few state governments to finalise the location of the plant. “This first-of-its-kind joint venture between the two companies will support Indian Prime Minister Narendra Modi's vision to create an ecosystem for semiconductor manufacturing in India,” the statement said.