Vedanta forms JV with Foxconn for semiconductor manufacturing

Vedanta has signed an agreement with the electronics manufacturing service giant Foxconn for a joint venture in order to manufacture semiconductors in India. It is the first company to make an announcement to invest in semiconductor manufacturing in India after the government announced a 76,000 crore investment to promote chip manufacturing and display ecosystem in India.

This is the second time the company is attempting to enter the semiconductor space. Earlier it planned to set up a display unit with about Rs 60,000 crore investment but could not take off. The MoU signed by the two companies includes that Vedanta holds the majority equity in the joint venture, while Foxconn will be a minority shareholder.

The chairman of Vedanta, Anil Agarwal will be the chairman of the joint venture. The project plans to invest in manufacturing semiconductors. The joint venture also follows the recent policy of the government for electronics manufacturing and PLI scheme for the development sector.