Taiwanese electronics manufacturing giant Foxconn and Indian conglomerate Vedanta have signed a memorandum of understanding to form a joint venture that will manufacture semiconductors in India.
Under the MoU, Vedanta will hold the majority in the JV, while Foxconn will be a minority shareholder. Vendanta chairman Anil Agarwal will also be the chairman of the new joint venture, the companies said.
“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,” the companies added.
The location for the new chip plant is still being finalised with a number of state governments in India, according to the companies.
At the end of last year, the Indian government announced a plan that will see the nation put ₹2,30,000 crore, around $30 billion, behind a plan to turn India into a semiconductor manufacturing powerhouse.
The government added it would be putting ₹55,392 crore, around $7.5 billion, behind its electronics manufacturing schemes, which include large scale electronics manufacturing, IT hardware, promotion activities, and electronics manufacturing clusters.