Vedanta, Foxconn to Form JV for Semiconductor Manufacturing in India

In line with the Government’s Make in India initiative, multinational group Vedanta has signed a Memorandum of Understanding (MoU) with the world’s largest electronics maker Hon Hai Technology Group (Foxconn) 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 Prime Minister Narendra Modi’s vision to create an ecosystem for semiconductor manufacturing in India.

The move will provide a significant boost to the domestic manufacturing of electronics in the country.

As per the MoU signed, Vedanta will hold the majority of the equity in the JV, while Foxconn will be the minority shareholder.

Also, Vedanta Chairman Anil Agarwal will be the Chairman of the JV firm.

However, discussions are currently ongoing with a few State Governments to finalize the location of the plant, the company said.

The development came after the Indian Government’s recent policy announcement for an electronics manufacturing and production linked incentive (PLI) scheme for incentivizing organizations to contribute towards the development of this sector.

Moreover, this will be the first JV in the electronics manufacturing space after the announcement of the policy.