Foxconn To Start Manufacturing Chips In India In Partnership With Vedanta

Last Updated on February 15, 2022 by Anu Joy

On Monday, Taiwan’s Foxconn announced its partnership with Indian company Vedanta to manufacture semiconductors in the country. This marks a significant milestone for the performance-linked incentive (PLI) scheme, as this is the first joint venture in the electronics manufacturing area, as noted by a joint statement by the companies.

MoU Signed By Vedanta And Foxconn

According to the MoU signed by Vedanta and Foxconn, the former will hold majority in the joint venture, whereas the latter will be the minority shareholder. Vedanta’s Anil Agarwal will assume position of chairman of the joint venture company. Foxconn will hold 40 percent of the venture’s shares and invest $118.7 million (roughly ₹893 crores). This venture is touted to boost the electronics manufacturing industry in India.

In a public statement, Foxconn 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.  

Foxconn and Vedanta are in talks with state governments in India to finalize the location of the manufacturing plant. Vedanta Limited is a subsidiary of Vedanta Resources Limited and is one of the world’s leading Oil & Gas and Metals company. On the other hand, Foxconn is known for being the largest supplier of Apple devices, besides earning the title of the world’s largest contract-based electronics manufacturer. Recently, the Taiwanese company has diversified its portfolio by venturing into EVs and the semiconductor sector.

India’s PLI Scheme

The partnership follows India’s ₹76,000 crore PLI scheme for semiconductor and display manufacturing which aims to encourage local production, thereby reducing India’s dependency on foreign OEMs and chip manufacturers. Besides, the government had also recently introduced progressive policies for the Large Scale Electronics Manufacturing industry.