Vedanta, an Indian conglomerate, said on Monday that it has agreed to create a joint venture (JV) with Foxconn to manufacture semiconductors in India.
Vedanta is the first business to declare plans to engage in semiconductor production following the government’s declaration of a Rs 76,000-crore initiative to improve the country’s electronic chip and display industry.
This is also Vedanta’s second effort to join the semiconductor market, following the failure of its previous intentions to establish a display business with an expenditure of almost Rs 60,000 crore.
“According to the MoU (memorandum of understanding) signed between the two companies, Vedanta will hold the majority equity in the JV, while Foxconn will be the minority shareholder,” the statement said.
The joint venture will be led by Vedanta Chairman Anil Agarwal, according to the statement. The intended initiative intends to invest in the production of semiconductors.
“It will provide a significant boost to domestic manufacturing of electronics in India. Discussions are currently ongoing with a few state governments to finalize the location of the plant,” the statement said.
The partnership between Vedanta and Foxconn comes in the wake of the government’s recent policy statement for electronics production, as well as the PLI program for incentivizing organizations to contribute to the growth of this industry. “This will be the first joint venture in the electronics manufacturing space after the announcement of the policy,” the statement added.
