Anil Agarwal-led Vedanta has signed an agreement with Taiwan’s Hon Hai Technology Group, better known as Foxconn, to manufacture semiconductors in India, the two entities said in a statement on February 14.
The move comes after the government announced a Rs 76,000 crore production-linked incentive (PLI) scheme for semiconductor and display manufacturing in an attempt to boost local production. India mainly imports semiconductors to use in industrial manufacturing and has been hurt severely by its global shortage. An increase in demand for consumer products, which use semiconductors, even as the pandemic disrupted production and supply chain, has resulted in a shortage of semiconductors and a steep rise in prices.
According to the memorandum of understanding, Vedanta will hold the majority stake while Foxconn will be the minority shareholder. Vedanta’s Chairman Anil Agarwal will head the joint venture.
“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 statement said.This will be the first joint venture in the electronics manufacturing space after the announcement of the policy by the government of India.