Vedanta and Hon Hai Technology Group (Foxconn) have announced signing of an MoU to form a joint venture (JV) company that will manufacture semiconductors in India.
This first-of-its-kind JV between the two companies will support India’s vision to create an ecosystem for semiconductor manufacturing in India.
According to the MoU signed between the two companies, Vedanta will hold the majority of the equity in the JV, while Foxconn will be the minority shareholder. Anil Agarwal, chairman, Vedanta will be the chairman of the JV.
The targeted project plans to invest for manufacturing semiconductors. 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.
The collaboration between Vedanta and Foxconn follows the India government’s recent policy announcement for electronics manufacturing and production linked incentive (PLI) scheme for incentivising organisations to contribute towards development of this sector. This will be the first JV in the electronics manufacturing space after the announcement of the policy.
