Vedanta, Foxconn JV to make semiconductors in India
On Monday, the Indian conglomerate Vedanta signed a pact with the i-phone and other electronics manufacturing services giant Foxconn to form a joint venture (JV) for manufacturing semiconductors in India.
Vedanta is a globally diversified natural resources conglomerate that deals with interests in zinc, lead, silver, copper, iron ore, aluminum, power generation, and oil and gas.
This joint venture between the two companies is expected to boost Prime Minister Narendra Modi’s vision to create an ecosystem for semiconductor manufacturing in India.
Earlier, the government had announced an Rs.76,000-crore programme to boost the electronic chip and display ecosystem in the country.
After the Centre’s announcement, Vedanta becomes the first company to make the announcement of investing in semiconductor manufacturing.
Vedanta’s earlier attempt to enter the semiconductor space and to set up a display unit with about Rs.60,000 crore investment could not take off.
The company said, ”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.”
It added that Vedanta Chairman Anil Agarwal will be the chairman of the joint venture.
”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 collaboration between Vedanta and Foxconn follows the government’s recent policy announcement for electronics manufacturing and the PLI scheme for incentivizing organizations to contribute towards the development of this sector.
”This will be the first joint venture in the electronics manufacturing space after the announcement of the policy,” the statement added.
Foxconn said it would invest $118.7 million to set up a joint venture company with Vedanta.
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