Apple supplier Foxconn joins hands with Vedanta Group to make semiconductors in India

Apple iPhone supplier Foxconn has recently joined hands with Indian oil-to-metals company Vedanta to manufacture semiconductors in India. A memorandum of understanding has been signed among the two companies that will create a joint venture for manufacturing chips in the country. The collaboration of these companies supports the Indian Prime Minister's vision to manufacture semiconductors in the country to counter the global chip shortage. 

The Taiwanese company will hold 40% of the venture's shares and invest $118.7 million, which roughly translates to Rs. 888 crores to set up a joint venture company with Vedanta, which will hold the majority of shares in the company. Additionally, the current chairman of Vedanta, Anil Agarwal will be the chairman of the joint venture company. As and when the plan goes into operations, it will provide a boost to the electronics manufacturing industry of the country.

Foxconn signs MoU with Vedanta

Both the companies are currently in discussion with state governments in the country to finalize the location of the production plant. In a public statement released after the MoU signing, Foxconn mentions that "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 government of India has recently announced its progressive policies for the Electronics Manufacturing industry and wants to incentivize the organisations that can contribute towards the development of electronics manufacturing in India. Apart from the policies, a Rs. 76,000 crore incentive linked to production has also been declared to enhance the local production and reduce the dependency of Indian manufacturers and market on foreign OEMs and chip developers.

Vedanta Group has a global presence in various industries including metals, oil & gas, telecom, glass and power. On the other hand, Foxconn is the world's largest contract-based electronics manufacturer and is also known as the largest supplier of Apple products. The company is based in Taiwan and has recently entered into EVs and semiconductor sector. Several other companies and brands must be looking forward to the production of semiconductors in India as it is used is almost all electronic items and hence has a huge demand.