In a significant development in the technology sector, Vedanta and Hon Hai Technology Group, otherwise known as Foxconn, have signed an MOU to form a joint venture company that will manufacture semiconductors in India. The move is seen as a major boost to domestic manufacturing of electronics in India.
This first-of-its-kind joint venture between the two companies will support the Indian Government’s drive to create an ecosystem for semiconductor manufacturing in India.
As per the MOU, Vedanta will hold the majority stake in the JV, while Foxconn will be the minority shareholder. Vedanta Chairman Anil Agarwal will be the Chairman of the joint venture company.
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 finalize the location of the plant.
The collaboration between Vedanta and Foxconn follows the Indian 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.