Vedanta And Foxconn Sign Pact For Manufacturing Semiconductors In India

Vedanta and Taiwan-based Hon Hai Technology Group, also known as Foxconn, on Monday (14 February) announced signing a memorandum of understanding (MOU) to form a joint venture company that will manufacture semiconductors in India.

According to the MOU signed between the two companies, Vedanta will hold the majority of the equity in the joint venture, while Foxconn will be the minority shareholder.

Vedanta Chairman Anil Agarwal will be the Chairman of the joint venture company, Foxconn said in a statement on Monday.

"The targeted project plans to invest for manufacturing semiconductors. It will provide a significant boost to domestic manufacturing of electronics in India," it added.

Discussions are currently ongoing with a few State Governments to finalise the location of the plant, according to the statement.

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 company said.

The collaboration between Vedanta and Foxconn follows the Indian government’s recent policy announcement for Electronics Manufacturing & PLI scheme for incentivising organizations to contribute towards development of this sector.

This will be the first joint venture in the electronics manufacturing space after the announcement of the policy, the company said.