Vedanta Group and Hon Hai Technology Group (Foxconn) on Monday announced the signing of an memorandum of understanding (MoU) to form a joint venture company that will manufacture semiconductors in India.
As per the MoU signed between the two companies, Vedanta will hold the majority stake in the JV while Foxconn will have minority stake. Vedanta Chairman Anil Agarwal will be the Chairman of the JV company.
The JV company will be applying for the government’s production linked incentive (PLI) Scheme for semiconductor manufacturing in India.
1st JV in electronics manufacturing
“The collaboration between Vedanta and Foxconn follows the India Government’s recent policy announcement for Electronics Manufacturing & PLI scheme for incentivising organisations to contribute towards developing this sector. This will be the first joint venture in the electronics manufacturing space after the announcement of the policy,” Vedanta Group said in a statement.
The companies are yet to finalise on a location to set up the first fab. “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 company added.
Earlier, in an interview with the media, Akarsh Hebbar, MD, AvanStrate Inc– a subsidiary of Vedanta Group, had stated that the company is planning to invest around $15 billion over the next 5-10 years to build displays and semiconductor chips in India. The investment was supposed to be made through AvantStrate.
Hebbar has been in talks with several state governments to set up a factory including Haryana, Gujarat, Maharashtra, Telangana, Tamil Nadu and Karnataka.
Published on
February 14, 2022
