Vedanta and Foxconn have signed an MOU to form a joint venture company that will manufacture semiconductors in India.
India-based Vedanta Group and Hon Hai Technology Group (Foxconn) have signed a memorandum of understanding (MOU) to form a joint venture company that will manufacture semiconductors in India.
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 the country.
According to the MOU, Vedanta will hold the majority of the equity in the JV, while Foxconn will be the minority shareholder. Vedanta Chairman Anil Agarwal will be the chairman of the JV company.
The targeted project plans to invest in manufacturing semiconductors, providing 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 collaboration between Vedanta and Foxconn follows the India Government’s recent policy announcement for electronics manufacturing and PLI scheme for incentivizing 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.