NEW DELHI: Anil Agarwal’s Vedanta group on Monday partnered with Technology Group Foxconn to manufacture semiconductor chips in India. The companies signed an MoU to form a joint venture company, and as per the deal, Vedanta will hold a majority of the equity in the JV, while Foxconn will be the minority shareholder.
“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,” said the companies in a statement.
To boost semiconductor manufacturing in the country, the government announced a policy to offer Rs 76,000-crore production-linked incentive. Vedanta has said that it will invest up to Rs 60,000 crore to set up a sophisticated chip and glass manufacturing ecosystem in India over the next three years. This will be the first joint venture in the electronics manufacturing space after the announcement of the policy.
“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,” said the company in a statement.