Indian conglomerate Vedanta on Monday said it has signed a pact with electronics manufacturing services giant Foxconn to form a joint venture (JV) for manufacturing semiconductors in India.
Vedanta is the first company to make an announcement to invest in semiconductor manufacturing after the government announced a Rs 76,000 crore programme to boost the electronic chip and display ecosystem in the country.
This is also the second attempt of Vedanta to enter the semiconductor space after its earlier plans to set up a display unit with an investment of about Rs 60,000 crore could not take off.
“According to the MoU (memorandum of understanding) signed between the two companies, Vedanta will hold the majority equity in the JV, while Foxconn will be the minority shareholder,” a statement said.
It added that Vedanta chief Anil Agarwal will be the chairman of the joint venture.
The targeted project plans to invest in 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 statement said.
The collaboration between Vedanta and Foxconn follows the government's recent policy announcement for electronics manufacturing and PLI scheme for incentivising organisations to contribute towards the development of this sector.
also read
- SBI report pegs GDP growth at 6.5% in Q2; sees some incipient pressure on domestic economy
- India markets jump, rupee falls to record low in morning trade on impending US Election results
- 'How The World Ran Out of Everything' book review: breathing life into an account of business shakedowns
- Gold or Silver: What to pick this Diwali?
“This will be the first joint venture in the electronics manufacturing space after the announcement of the policy,” the statement added.